In order of how many industrially advanced economies exist in the world, what is the most to least frequent?

mixed economy, command economy, traditional economy,

Marginal analysis refers to

the "extra" cost or benefit of one more of something

Reflecting on the Economic Freedom Index, what is LEAST consisten with those countries that are most free?

They invest in public services, such as government provided health care

The fundamental problem faced by all economic systems is

limited resources vs. unlimited wants

The Law of Diminishing Utility explains why

We don't want to pay full price if we buy a second bottle of shampoo

Which of the following is a fundamental question of economics?

what goods and services should be produced?

Holly owns a computer repair business and just fired Franco. Does Franco count as physical capital?

No but as a worker he is a factor of production.

Which of the following is a feature of a mixed economy that distinguishes it from a command economy?

Markets, prices and the gov. direct economic activity

Which of the following statements is not an accurate description of scarcity vs. shortage?

scarcity is a natural-occurring phenomenon and is temporary

Economics is the study of

the allocation of scarce resources among economic agents

The birth of economics as an intellectual discipline can be dated fairly precisely to the 18th century with

the publication of the book, The Wealth of Nations

What two concepts belong together?

the invisible hand and laissez-faire

What role does the government NOT play in a mixed economy, as seen in the circular flow model

All are roles of the gov. in a mixed economic system

In the circular flow diagram, which is true ir resource or factor markets?

business firms buy resources from households

Our economy is made up of the production and consumption of goods and services, identify the good:

you buy cookies from Mrs. Jenny in the cafeteria

Which is NOT in the scope of a "limited government"

all are part of limited government

Which of the following is least accurate?

the redistribution of income in a mixed economy canimprove economic freedom

What is not intended as property rights?

public ownership of institutions such as schools, roads, bridges

Making a choice at the margin means

comparing the extra cost of a choice to the extra benefit

Which of the following would not necessarily increase a country's productivity?

a cut in taxes, so people have more money to spend

studbud

Econ Unit 1

36 termsStudBud Administration31 plays

Imported from external platform

Flashcards36 cardsFPractice quizPHost liveL

Questions 36

Answers

1
In order of how many industrially advanced economies exist in the world, what is the most to least frequent?
traditional economy, command economy, mixed economy
mixed economy, free market economy, command economy, traditional economy
free market economy, command economy, mixed economy, traditional economy
mixed economy, command economy, traditional economy,
2
The manufactured materials that are created by machinery and brought to the market for households are called?
entrepreneurship
capital goods
consumer goods
natural resources
3
Denton developed a new combination of factors and production to create a new product and is marketing it for sale now
labor
entrepreneurship
human capital
service-base business
4
Marginal analysis refers to
the average cost of something
the "extra" cost or benefit of one more of something
the total cost of something
the total benefit of something
5
The Latin term "ceteris paribus" means
"other things being equal"
"false until proven true"
"after this, therefore because of this"
"What is true of the whole is not necessarily true of the parts"
6
Which fundamental question of economics does advertising best answer?
what to produce?
for whom to produce?
how to produce?
what is the cost of production?
7
Reflecting on the Economic Freedom Index, what is LEAST consisten with those countries that are most free?
They have low levels of regulation on business
Private property is very secure
They invest in public services, such as government provided health care
The people trust in the integrity of the government
8
The fundamental problem faced by all economic systems is
unlimited resources vs. limited wants
limited resources vs. unlimited wants
unlimited resources vs. unlimited wants
limited resources vs. limited wants
9
The Law of Diminishing Utility explains why
The government enforces competition
We don't want to pay full price if we buy a second bottle of shampoo
We are paying so much for natural gas
We are less happy as things get older
10
Which of the following is a fundamental question of economics?
why are resources so scarce?
the trade-off between price stability and economic growth?
what goods and services should be produced?
why do marginal costs increase with more production?
11
Holly owns a computer repair business and just fired Franco. Does Franco count as physical capital?
No but as a worker he is a factor of production.
Maybe, he might be an accountant rather than a general worker.
Yes, he adds capital value to the business.
Yes, he was hired for his physical abilities
12
Which of the following is a feature of a mixed economy that distinguishes it from a command economy?
Markets, prices and the gov. direct economic activity
all production is managed by the gov.
all of the above
private ownership and activity determine what goods will be made
13
The following allocation of resources is answered by which economic question? (1st come 1st serve, ability to pay)
how to produce?
how to distribute it?
what to produce?
for whom to produce?
14
The shortages listed in 2021, which refers to a shortage of services?
gasoline
plastics and palm oil
computer chips
rental cars
15
Which of the following statements is not an accurate description of scarcity vs. shortage?
scarcity is a natural-occurring phenomenon and is temporary
shortages can be controlled through importing (products under shortage)
shortage is a choice made by man
all of the above
16
Economics is the study of
free enterprise
what economists do
the allocation of scarce resources among economic agents
land, capital, labor, and entrepreneurship
17
A basic assumption in economics is that people take actions that are
in the best interests of government
independent of the decisions of others
in their best interests
driven by a monetary incentive
18
The birth of economics as an intellectual discipline can be dated fairly precisely to the 18th century with
the opening of the London stock exchange
the publication of the book, The Wealth of Nations
the development of the industrial revolution
the introduction of paper currenct
19
An incentive is
could be a reward but could not be a penalty
could be a penalty but could not be a reward
the opposite of a tradeoff
could be a reward or a penalty
20
What two concepts belong together?
marginal cost and fixed cost
financial capital and factors of production
the invisible hand and laissez-faire
there is no such thing as a free lunch and human capital
21
When Susan says "The gov. should spend more money to take care of national parks" she is
testing an economic model
facing the standard of living tradeoff
making a positive statement
making a normative statement
22
Adam Smith would contend that people respond predictably to
the wants and desires of their loved ones
their basic incentives
incentives
gov. rules, regulations, and laws
23
What role does the government NOT play in a mixed economy, as seen in the circular flow model
The gov. pays money to households but recieves no goods/services in return
All are roles of the gov. in a mixed economic system
The gov. is the largest consumer in the economy
The gov. provides income to business in the form of factor payments
24
In the circular flow diagram, which is true ir resource or factor markets?
business firms sell goods and services to households
business firms buy resources from households
Households buy resources from business firms
households sell products to business firms
25
Economic models
simplify reality
include all relevant facts
are essentially different from those used in other sciences
always use graphs
26
The fact that wants cannot be fully satisfied with available resources reflects the definition of
scarcity
for whom to produce
the "what" tradeoff
the big tradeoff
27
Our economy is made up of the production and consumption of goods and services, identify the good:
your boss asks you to wash the tables
you hire someone to color your hair
you buy cookies from Mrs. Jenny in the cafeteria
your dentist cleans your teeth
28
Which is NOT in the scope of a "limited government"
the promotion of workplace safety
promoting programs that benefit society as a whole
all are part of limited government
laws that support patents and copyrights
29
Which of the following is least accurate?
Economic security is a core value of traditional economy
the redistribution of income in a mixed economy canimprove economic freedom
economics equity is a major aspect of a command economy
Economic efficiency often suffers in a mixed economy
30
What is not intended as property rights?
public ownership of institutions such as schools, roads, bridges
the right to use your land the way you want
ability to produce and sell an invention you created for years
a legal protection that gives authors of books rights to their use
31
People are forced to make choices because they
generally have limited income
must deal with scarcity
are required to do so by government
manage to get by with less
32
If you have 4 hats at point C and 1 hat at point A, what is the opportunity cost of changing from point C to A
2 hats
4 hats
1 hat
3 hats
33
Which is NOT considered one of the factors of production?
a fertile field
computers
cash
opening a new restaurant
34
Betty can study economics for 3 hours or go to the movies. Betty's opportunity cost of going to the movies is
3 hours of studying econ
price of her movie ticket
The price of her movie ticket and cost of popcorn
The cost of a soda
35
Making a choice at the margin means
comparing the extra cost of a choice to the extra benefit
letting someone else choose for you
comparing the total cost of a choice to the total benefit
waiting until the last minute to make a choice
36
Which of the following would not necessarily increase a country's productivity?
increased purchases and investment in capital goods
train people to transition from low skilled work to more skilled work
a cut in taxes, so people have more money to spend
techonological advancements in manufacturing

Econ Unit 1 Flashcards | StudBud