Economics: Chapters 1-3

Question 1

In a command economy, resources and businesses are owned and controlled by

Accepted Answer

the government

Question 2

Most nations have a

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mixed economy

Question 3

The total value of goods and services produced in a country in a given year is called

Accepted Answer

GDP

Question 4

in a command economy, highly skilled workers

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earn the same as unskilled workers

Question 5

All of the following involve offering services except

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grocery stores

Question 6

Economic indicators measure

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all of these

Question 7

Which of the 4 factors of production must adapt to meet society's changing wants and needs?

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entrepreneurial

Question 8

The desire to make a profit is

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profit motive

Question 9

Tasks that businesses perform for consumers are known as

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services

Question 10

The rise and fall of economic activity over time is called

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the business cycle

Question 11

The reward for satisfying the needs and wants of consumers and businesses is

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profit

Question 12

During a depression, there is

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high unemployment and low production of goods and services

Question 13

Economies with greater governmental control are considered more

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socialist

Question 14

In a market economy, market resources are

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privately owned

Question 15

The economic resources needed to make a society's goods and services are called factors of

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production

Question 16

For businesses to stay successful, they must offer

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all of these

Question 17

A general increase in the price of goods and services is called

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inflation

Question 18

Buildings, delivery trucks, and equipment are all examples of

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capital resources

Question 19

A lack of the resources needed to go into producing goods and services is called

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scarcity

Question 20

Deciding to use a resource for 1 purpose & giving up the chance to use it for something else is

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opportunity cost.

Question 21

Some natural resources, such as wheat and cattle, are

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renewable.

Question 22

Market research provides information that can help a business

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all of these

Question 23

The main source of income for a government is

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taxes

Question 24

What is the point at which the quantity demanded and quantity supplied meet?

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equilibrium price

Question 25

Scarcity occurs when

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demand exceeds supply

Question 26

Items that people can use to make or obtain what they need or want are called

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resources

Question 27

To avoid failure, a business can modify its

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all of these

Question 28

The study of how individuals and businesses strive to satisfy their wants and needs is called

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Economics

Question 29

Which of these are basic human needs?

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food, water, clothing

Question 30

Raw materials from nature are called _resources

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natural

Question 31

During a recovery,

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production starts to increase

Question 32

What is any commercial activity that seeks profit by providing goods and services for money?

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Business

Question 33

All of the following are factors of production except

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educational resources

Question 34

The total amount of money a government owes is its

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national debt

Question 35

Which of the following satisfies a public want?

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a library

Question 36

The Federal Reserve is a government agency that guides the economy by

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controlling interest rates, controlling the amount of money loaned, regulating the amount of money in circulation

Question 37

The stock market crash on October 29, 1929, is known as

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Black Tuesday

Question 38

In a market economy, the higher the price,

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the less consumers will buy

Question 39

Wants that are widely shared by many people are called

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public wants

Question 40

The contest among businesses to win customers is called

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competition

Question 41

When the supply of goods is greater than demand, it can result in

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deflation

Question 42

The unemployment rate measures the number of people who

Accepted Answer

are able and willing to work but cannot find a job

Economics: Chapters 1-3

Questions 42

Economics: Chapters 1-3

Questions 42