Competition happens when two or more businesses

fight for the same benefit or profit gain

What is the best definition of technology?

Technology is applying scientific knowledge to fix problems

A furniture company uses cheaper materials to decrease production cost. This is an example of

passing on savings to customers

What is one way that technology can improve the distribution of goods?

Container ships can transport a number of goods at once

Assessing opportunity cost involves

making choices and dealing with consequences

One of the three economic questions deals with deciding

What goods and services should be produced

How can the use of new technology in industry benefit the US government?

The gov't can react to economic changes quickly

What is the best definition of ownership?

Ownership is the right to possess land or goods

What is one argument in favor of the wealth gap?

Investments by the upper class create lower-class jobs

This graph could help an economist predict

how many people will be out of work in the next year

What restriction would the government impose in a closed economy?

The gov't would prohibit trade with other nations

Innovation allows producers to

create goods that draw consumer attention

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Economics Test 1 Review

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Economics Test 1

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Questions 25

Answers

1
Which of the following has the largest impact on opportunity cost?
Consumer wants
Limited Resources
Tight deadlines
Consumer needs
2
In which economic system do citizens have the fewest property rights?
Traditional Economy
Free Market Economy
Mixed Market Economy
Command Economy
3
This graph suggests that unemployment in the US will
remain stagnant
only change a little
continue to fall
continue to rise
4
Competition happens when two or more businesses
work together to achieve success
fight for the same benefit or profit gain
follow regulations from an agency
complement one another
5
What is the best definition of technology?
Technology is hiring workers from all over the world
Technology is applying scientific knowledge to fix problems
Technology is replacing human workers with mechanics
Technology is using fewer resource to manufacture goods
6
A furniture company uses cheaper materials to decrease production cost. This is an example of
creating a new or better product
reducing the risk for consumers
following a federal regulation
passing on savings to customers
7
A basic concept of economics is that all resources are
renewable
allocated
limited
valuable
8
Resources needed to provide goods or services are called
Facts of production
Functions of production
Factors of production
Facets of production
9
What is one way that technology can improve the distribution of goods?
Container ships can transport a number of goods at once
Automation can create goods more cheaply and easily
Businesses can hire factory workers across the world
Workers can take internet classes to gain new skills
10
Assessing opportunity cost involves
making choices and dealing with consequences
reviewing past decisions and changing them
minimizing profit and loss
choosing consequences over rewards
11
What is one consequence of using automation to improve production is
fewer jobs are available
production can slow down
costs often rise for producers
prices often rise for consumer
12
One of the three economic questions deals with deciding
What goods and services should be produced
How consumers will receive products
How goods and services will be marketed
What the costs of production should be
13
How can the use of new technology in industry benefit the US government?
The gov't can purchase materials from anywhere
The gov't can react to economic changes quickly
The gov't can transport goods around the world
The gov't can rely on automation to reduce costs
14
What is the best definition of ownership?
Ownership is the right to possess land alone
Ownership is the right to purchase goods alone
Ownership is the right to possess land or goods
Ownership is the right to purchase land or goods
15
Which object is likely to have the most value based on the concept of scarcity?
a diamond ring
a flowering plant
a crop of oranges
a new coffee table
16
What kind of economy uses a free enterprise system?
a market economy
a traditional economy
a command economy
a closed economy
17
What is one argument in favor of the wealth gap?
Buying power sharply increases for the working class
Poor people can easily move into the middle class
The lower classes have the opportunity to invest
Investments by the upper class create lower-class jobs
18
In an economic system, who creates regulation?
Consumers
the Government
An outsourced third party
Producers
19
This graph could help an economist predict
why workers might have a harder time finding jobs
how the gov't will address unemployment
how many people will be out of work in the next year
why producers might hire fewer workers in the future
20
What restriction would the government impose in a closed economy?
The gov't would prevent private ownership of property
The gov't would set the prices for imported goods
The gov't would preserve traditional customs only
The gov't would prohibit trade with other nations
21
Based on this graph, how much wealth did the top 20% of the population hold?
55%
100%
35%
90%
22
Producers can generate instant sales by using
Charts and graphs
Websites
Forecasts
Devices
23
Innovation allows producers to
avoid competing with smaller businesses
offer warranties for all of their products
follow restrictions from the government
create goods that draw consumer attention
24
Which of the following is an example of a capital resource?
time
weaving loom
coal
water
25
In a free-enterprise system, consumers decide
how to set prices
how to use materials
which goods to export
which services to buy

Economics Test 1 Review Flashcards | StudBud