Basic Economic Concepts Test Review

In "The Wealth of Nations" A. Smith argued the most efficient economy is a market/capitalist system.

How would you classify the factor of production shown by the image on the right?

Vanessa chose college after high school instead of getting a job. What's her opportunity cost?

At what point is the country not fully employed?

How would you classify the factor of production shown in the image?

Capital when it is a factor of production is money.

How might Point E be attained?

Economic goal that provides income and health care for the poor, retired, and disabled.

Boris lives in a country where the government makes all the economic decisions.

Economic goal that concerns the wise use of resources.

Economic goal that promotes the ability of people to make their own economic choices.

Keynes' economic theory is that in the short run a pure market system will not self correct, but in the long run it will

National values are not involved in Government decisions about national economic goals.

What number on the chart illustrates Maria paying her federal income taxes?

Economic goal concerned with the effect of business and government policy on all citizens.

Economic system that has characteristics of command economy and market economy.

Economic goal promoting increased production, employment, and deregulation of industries.

What number on the chart illustrates Keisha making decorative pillows that she sells for $30.

What number on the chart illustrates David buying a CD at the local store for $9.99?

When families need items another family makes, they barter for an exchange of goods/services.

This system is associated with the ideas of Karl Marx and socialism/communism.

Mia lives in a country where individuals make all the economic decisions.

What factors of production are evident in the image?

How would you classify the factor of production shown in the image?

If the country is currently producing at Point C, it can produce more computer by

What number on the chart illustrates Emily earning $6.50/hr. entering data at a law office?