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Economics GSE SSEF 1-6 (Fundamentals) Flashcards | StudBud
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Economics GSE SSEF 1-6 (Fundamentals)
Economics GSE SSEF 1-6 (Fundamentals)
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Fundamentals of Economics (GSE) Review for GMAS and Benchmark
Flashcards
45 cards
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Practice quiz
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Questions
45
Answers
1
What is a factory building an example of?
capital
an economic trade-off
technology
land
2
A market economy depends on
private ownership and control of resources
government ownership and control of resources
an equal distribution of wealth
limited competition and profits
3
The purpose of production possibilities graph is to
make it possible to increase an economy's outputs
show alternative ways to use an economy's resources
keep an economy from having nonproductive workers
enable a country to mobilize to win a war
4
An economy that uses its resources to make the greatest number of goods/services is said to be
efficient
using opportunity cost well
globally aware
underutilized
5
Which of the following is NOT a key economic question?
How should it be ensured that goods & services are paid for?
How should these goods and services be produced?
What goods and services should be produced?
Who consumes these goods and services?
6
Why are all goods and services scarce?
All resources are scarce
Some people want to have more goods than others
Some things are needs and others are wants
Some goods cost more than others
7
You are an entrepreneur. Which economy would you have the MOST opportunity to succeed?
traditional economy
command economy
market economy
Paul's economy
8
An efficient economy is one that
uses its resources to make the most goods and services
makes the least costly use of its resources
makes the best use of all its goods and services
has very few people who do not work for a living
9
In what kind of an economy does the government make all the decisions?
command economy
market economy
mixed economy
traditional economy
10
Human capital includes
the machinery used to weave cloth
the equipment used by a doctor to cure a patient
the salary paid to an account
a taxi driver's knowledge of the city streets
11
How could the Chinese economy be characterized?
mixed, but on the side of free market
centrally planned
mixed, but on the side of command economy
free market
12
What can cause a production possibilities curve to move to the right?
an epidemic kills thousands of people
the population is growing increasingly old
thousands of people move out of the country
a new invention lowers the cost of production
13
If a nation encourages entrepreneurship, then which of the following is likely to Occur?
the development of many new products and process methods
very little change in overall production of goods & services
fewer applicants to the U.S. patent office
a decline in the number of new business created
14
Which of the following lists would an economist consider
land
?
farm fields, tractors, pesticides, fertilizers
dams, bridges, rock quarries, oil wells
iron ore, natural gas, fertile soil, water
factories, office buildings, assembly lines, workers
15
You bought CDs for $30. (you wont get paid till Monday) What is the opp. cost of these CDs?
$30
difference btw the cost of making CDs and the price you paid
knowing you are the first of your friends to have the CDs
dinner & movie with your friends
16
On a PPC, a point that is impossible is
on the curve
outside the curve
hiding with Mo (from Paul)
inside the curve
17
The resources used to make all goods and services are the
opportunity costs
production trade-offs
production possibilities
productive resources
18
What is an important advantage of a free market?
it is easy to regulate
it does not change unless the government directs it
it offers a wide variety of goods and services
it protects the less fortunate
19
A factory building is considered to be part of which of the following productive Resources?
entrepreneurship
labor
land
capital
20
Why does even a free market economy need some government intervention?
to ensure that the gov. has the freedom to tax as necessary
so the government has some control over factor resources
to provide for things that the marketplace does not address
to make sure that the gov. can meet its need for military
21
The gov. must decide between military spending and helping farmers. This kind of decision is a
decision at the margin
basic economic decision
guns or butter issue
global trade-off
22
In the cafeteria, there are servers, grill cooks, a baker, & dishwashers:This is a example of:
budget cutting
over employment
lack of training
division of labor
23
Which of the following is an example of capital investments for a manufacturing company?
buying ad space in magazines
renting office space for managers
buying new machines for production
hiring workers for its factories
24
Linda went to the bank to obtain a loan to start a health food store. She is an example of
land
capital
entrepreneurship
labor
25
What effect does new technology usually have on an economy?
it reduces the available jobs
it slows an economy down for at least a while
it reduces the dependence of the economy on business
it makes the economy stronger and more efficient
26
Which of the following makes someone an entrepreneur?
managing a service that hires people to install sprinklers
earning a lot of money as a computer programmer
becoming a highly paid dancer
inventing & selling the right to manufacture a computer game
27
Any resources that are made by humans and used to create other goods and services are called
services
labor
production
capital
28
Which of the following does a government provide as part of a safety net for the People?
regulation of business
a strong military defense
general elections every four years
welfare
29
Which of the following is NOT an example of a public good?
shopping malls
lighthouse
T.V. station
municipal libraries
30
The opportunity cost of a decision can be explained by using a
factors of production chart
production possibilities curve
graph of increasing costs
global trade-off grid
31
On a PPC, an inefficient use of resources is
in paul's mouth
outside the curve
on the curve
inside the curve
32
Which of the following is NOT a characteristic of a command economy?
the central government owns all the land and capital
the central government makes all economy decisions
each person is assigned a job
people have a lots of choices when it comes to their jobs
33
Which of the following goals is difficult to achieve in a pure free market system?
efficiency
equity
freedom
growth
34
What is one benefit provided by Social Security?
retirement income for the elderly
compensation for all who lose jobs
medical care for the indigent
cash transfers to workers injured on the job
35
A company that makes baseball caps is underutilizing/inefficient its resources. This mean?
the company is running more efficient than its competitors
the company is producing fewer caps than it could be
the company is paying its employees less than it should be
the company is making caps when it could do t-shirts instead
36
A ppc increases (right) b/c workers are more skilled at using a computer-what kind of growth
technology
production opportunity
physical capital
global resources
37
What is one of the most important advantages of a free market?
it encourages growth
consumers have little choice about the products they consume
it is easy to regulate
it protects the less fortunate
38
Paul works as an attorney for a corporation. He is an example of which productive resources?
Capital
Labor
Entrepreneurship
Land
39
What does the process of specialization do for an economy?
it makes it more efficient
it fosters competition
it eliminates unemployment
it makes it easier to control
40
What is the opportunity cost of a decision?
the best possible way the question could have been decided
the different ways that a different person might have picked
the most desirable alternative given up for the decision
a series of alternative decisions that could have been made
41
The physical capital used by woodworkers to make furniture includes
wood and glue
hard work and time
saws and drills
a workshop and money
42
What is the purpose of competition?
To act as a regulating force in the marketplace
to cause producers to try to put each other out of business
to cause buyers to have to be careful about spending money
to act as a motivating force behind the free market
43
Which sentence BEST describes the effects of regulation and deregulation?
regulation helps both ; deregulation hurts both
regulation and deregulation have pros and cons for both
regulation helps producers and deregulation helps consumers
regulation helps consumers and deregulation helps producers
44
Fred and Anne both decide to see the same movie when they are given free tickets. We know that
neither bear an opp. cost because the tickets were free
both-an opp. cost b/c they could have done other things
higher cost for the one who had more things to do
both-the same opp. cost since they are doing the same thing
45
Which of the following is NOT a weakness of centrally planned or COMMAND economies?
most workers lack job security
consumers’ needs are generally not met
workers lack incentives to be innovative
individual freedoms are sacrificed for societal goals
