What is the basic economic problem?

Needs and wants are unlimited but resources are scarce

Which type of goods are the following? Pencils and doors

Neither Substitute nor Complement

Which of the following describes the Marxist school of economic thought?

Econ=classes, important domain=production, world=certain

Which of the following describes the Classical school of economic thought?

Econ=classes, important domain=production, world=certain

Which of the following is true of fiat money?

It has value because government decrees it does

Which of the following describes the Austrian school of economic thought?

Econ=individuals, important domain=exchange, world=uncertain

Which of the following describes the Keynesian school of economic thought?

Econ= classes, important domain=ambiguous, world=uncertain

Which of the following correctly lists the factors of production?

Land, labor, capital, entrepreneurship

If they are substitute goods, what happens to good A if the price of good B drops?

The demand for good A goes down

Which 3 questions must you answer to have an economic system?

What to produce, how to produce it, who gets it?

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Economics Test

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Economics Basics

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Questions 22

Answers

1
How could the US save $52.9 million dollars?
Layoff 10% of its employees
Switch from paper bills to coins
Get rid of the penny
Make bills from plastic instead of linen and cotton
2
Which type of goods are the following? Hotdogs and buns
Neither Substitute nor Complement
Both Substitute and Complement
Complement
Substitute
3
Type of economic system in which government controls all the factors of production
Barter
Free Market
Mixed
Planned
4
What is the basic economic problem?
How much to charge for items you have produced
Resources are unlimited but needs and wants are scarce
Attempting to determine the opportunity costs of choices
Needs and wants are unlimited but resources are scarce
5
Which type of goods are the following? Whole milk and almond milk
Complement
Neither Substitute nor Complement
Both Substitute and Complement
Substitute
6
Which type of goods are the following? Pencils and doors
Complement
Both Substitute and Complement
Neither Substitute nor Complement
Substitute
7
Which of the following describes the Marxist school of economic thought?
Econ= classes, important domain=ambiguous, world=uncertain
Econ=classes, important domain=production, world=uncertain
Econ=individuals, important domain=exchange, world=uncertain
Econ=classes, important domain=production, world=certain
8
Which of the following describes the Classical school of economic thought?
Econ=classes, important domain=production, world=uncertain
Econ= classes, important domain=ambiguous, world=uncertain
Econ=classes, important domain=production, world=certain
Econ=individuals, important domain=exchange, world=uncertain
9
What type of currency makes up 92% of the world's currency?
Fiat
Digital
Physical
Commodity
10
Which of the following is true of commodity money?
The money has value because government decrees it has value
The US currently uses it
The money has value in itself
It is digital
11
Which of the following is true of fiat money?
It has value because government decrees it does
It has value in itself
The US no longer uses it
It is in bill form only
12
Which of the following describes the Austrian school of economic thought?
Econ=individuals, important domain=exchange, world=uncertain
Econ=classes, important domain=production, world=uncertain
Econ=classes, important domain=production, world=certain
Econ= classes, important domain=ambiguous, world=uncertain
13
What does scarcity always lead to?
Never having enough of what you want
Saving money
Choice
Unhappy opportunity costs
14
Which type of goods are the following? Vans shoes and Converse shoes
Neither Substitute nor Complement
Both Substitute and Complement
Complement
Substitute
15
Type of economic system in which individuals control all the factors of production
Mixed
Barter
Planned
Free Market
16
Which of the following describes the Keynesian school of economic thought?
Econ=individuals, important domain=exchange, world=uncertain
Econ=classes, important domain=production, world=uncertain
Econ=classes, important domain=production, world=certain
Econ= classes, important domain=ambiguous, world=uncertain
17
Which country was the greatest counterfeiter of US currency for over 10 years?
North Korea
South Korea
Africa (This is a continent, not a country. Don't choose it)
Korea
18
Type of economic system in which there is a spectrum of government involvement
Barter
Planned
Mixed
Free Market
19
If they are complement goods, what happens to good A if the price of good B drops?
There is no effect on the demand for good A
The demand for good A goes down
The price of good A goes up
The demand for good A goes up
20
Which of the following correctly lists the factors of production?
Land, labor, equipment, entrepreneurship
Land, liberty, capital, enterprise
Land, labor, capital, entrepreneurship
Equipment, labor, cash, resources
21
If they are substitute goods, what happens to good A if the price of good B drops?
The price of good A goes up
There is no effect on the demand for good A
The demand for good A goes down
The demand for good A goes up
22
Which 3 questions must you answer to have an economic system?
Why to produce, who gets it, how to distribute it?
What to produce, who produces it, who gets it?
How to produce, where to produce, who gets it?
What to produce, how to produce it, who gets it?

Economics Test Flashcards | StudBud