The reason for scarcity is best explained by which statement?

People's wants exceed the resources available.

Compared to free market economies, command and traditional economy systems generally have

fewer privately owned businesses

Sweden provides many public services without charge. Which statements is true?

Citizens pay higher tax rates to pay for public services.

The "invisible hand", Adam Smith's theory, best describes what situation?

People seeking their own self-interest makes them better off

The United States economy is best described today as

mixed economy with government regulations

Market economies usually result in what compared to command economic systems?

more competition among producers

The study of Economics is best defined as:

people using their resources to satisfy competing wants.

Decision about what to produce in a command economy are made by

national leaders and government officials

Goods are most often produced as a result of what in a market economy?

interaction between buyers and sellers

A description of capital resources, that economists refer to are:

Factories,equipment, and machinery.

Between two people in a voluntary exchange

Both expect to benefit from the exchange.

Consumers, by definition, are most likely to use their money to

satisfy specific needs and wants

The four factors of production are?

land,labor,capital and entrepreneurship.

Economist, Adam Smith, would agree with which of the following statements?

Free markets have the ability to regulate themselves

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Marks Econ. Chapter 1 and 2 Review

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Questions 40

Answers

1
Grill,freezer,hamburger,cash register,fryers.Which is NOT capital?
cash register
Grill/fryers
grill
hamburger
2
What do you surrender when you move on the spectrum from command system to capitalism
Freedom
Resources
Equality of outcome
Equality of opportunity
3
Capitalism, decisions about production and distributing of goods and services are made by:
military personal
politicians in the federal government
producers and consumers
economist hired by the government
4
The decision to produce, how and for whom to be produced, is decided by who?
both A and B
A. consumers
none of the above
B. businesses
5
The reason for scarcity is best explained by which statement?
Getting products from producers to consumers.
None of the above.
People's wants exceed the resources available.
Population is growing faster than production.
6
Which person is most associated in the command system of economics?
John Stuart Mill
Karl Marx
Milton Friedman
Adam Smith
7
Have $900 for books, stereo and a printer. Chose books and printer. Opportunity cost is?
$1150
stereo
$900
Stereo and books
8
Compared to free market economies, command and traditional economy systems generally have
a wider variety of choices for consumers
higher standard of living among the general population
fewer government regulations and rules to follow
fewer privately owned businesses
9
Sweden provides many public services without charge. Which statements is true?
Most pay for public services.
Citizens enjoy public services without paying taxes
Citizens pay higher tax rates to pay for public services.
Few participate in government public service programs
10
The "invisible hand", Adam Smith's theory, best describes what situation?
Govt subsidies require to improve Econ conditions.
free markets result in personal hardship and financial ruin
political leaders collect taxes to ensure prosperity.
People seeking their own self-interest makes them better off
11
Capitalism wants an equality of opportunity
Not an equality of outcome,
And shared resources.
And economic equity.
And an equality of outcome.
12
Thomas Jefferson stated"Free men are not ____. Equal men are not ____."
Dictated, elected
equal, free
Equal, controlled
Controlled, free
13
The United States economy is best described today as
command economy
mixed economy with government regulations
traditional economy
pure market without government regulation
14
"The Wealth of Nations" was written by whom?
Benjamin Franklin
Karl Marx
John Maynard Keynes
Adam Smith
15
An economic system works hand in hand with a country's:
Educational system
Political system
All of the above
Environmental system
16
Market economies usually result in what compared to command economic systems?
fewer choices available to consumers
fewer entrepreneurial opportunities
more competition among producers
more government regulations of business
17
You go into a business for what purpose?
profit (Money)
partnership opportunity
have extra money to invest
government mandate
18
Small community,family and agriculture is based on what economy?
Traditional economy
Small economy
Mixed economy
Command economy
19
Market economy pillars are:
all of the above
private property
market competition
price system
20
An incentive is which of the following?
A. consistent practice leads to a win for the team
both A and B
B. Buy one/get one without cost
C. Increased income leads to increase taxes paid
21
The study of Economics is best defined as:
types of business organizations.
the production of goods and recources in a given market.
people using their resources to satisfy competing wants.
how the government allocates scarce resource.
22
Decision about what to produce in a command economy are made by
elected community leaders
buyers and sellers in a process of voluntary exchange
entrepreneurs and business investors
national leaders and government officials
23
Illustrations of a market are which of the following?
A person buying spark plugs at an auto parts store.
All of the above.
Phone orders for an electronic gadget.
Owner of a used car business buying car parts.
24
Goods are most often produced as a result of what in a market economy?
equal sharing based on individual needs
laws adopted by a majority rule of citizens
interaction between buyers and sellers
decisions made by a central authority
25
A description of capital resources, that economists refer to are:
Workers and materials.
Factories,equipment, and machinery.
Money in the bank.
Soil, mineral deposits and other raw materials.
26
Country X, government owns the land and prices are set by government. What system?
Mixed economy
A and B
Command economy
Free market economy
27
What is a major problem facing all economic systems?
Technology
surplus production
Scarcity
inadequate wants
28
In a market economy, when you purchase a product, you are engaging in:
voluntary exchange
government regulation
predatory pricing
monopolistic competition
29
A person who starts a business and produces a product is an
Enterpreneur
Manager
Broker
Partner
30
Between two people in a voluntary exchange
Both lose more than they gain.
Both expect to benefit from the exchange.
No one gains or loses.
One gains the other loses.
31
From 1776 to around 1900, which BEST describes the economic system in the U.S.?
command
Mixed economy
pure capitalism
socialism
32
Consumers, by definition, are most likely to use their money to
satisfy specific needs and wants
market new services to the public
research and develop new products
purchase raw materials for manufacture
33
Which economic system answers ONLY by the interaction of buyers and sellers?
Free enterprise system
Traditional economy
Command system
Everything is free economy
34
What do you surrender on the spectrum when moving from free market to the command system?
Resources
Freedom
Equality
Machinery
35
When making a choice,what is the highest valued alternative GIVEN UP?
opportunity cost
scarcity cost
Profit/loss statement
Mutual benefit
36
Country Y, gov't regulates business, people own factors of production. What system is it?
free market economy
mixed economy
B and C
command economy
37
The four factors of production are?
land,labor,profit and prices.
profits,prices,markets and entrepreneurship.
land, financial capital,entrepreneurship, labor.
land,labor,capital and entrepreneurship.
38
Economist, Adam Smith, would agree with which of the following statements?
Prices needed to be adjusted so things are fair
Free markets have the ability to regulate themselves
Politicians are better making decisions than consumers
Governments need to control the economy
39
What resources are examples of Iron ore, timber, and crude oil?
All of the above
human resources
capital resources
natural resources
40
Ann wants to play ball and work,She decides to play ball. The opportunity cost is?
Being with friends
Working
There is no opportunity cost, because no money is spent.
Playing softball

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