Economics test # 1

Question 1

Which type of economy does the United States have?

Accepted Answer

Mixed market economy

Question 2

What is the definition of an economic system?

Accepted Answer

A way of producing things the people need and want.

Question 3

What is the definition of want?

Accepted Answer

Unlimited desires that ppl have & can be met by getting a good or a service

Question 4

Which of the following would be an example of human capital?

Accepted Answer

A taxi driver's knowledge of of the city streets.

Question 5

What two categories do wants fall under?

Accepted Answer

Goods & Services

Question 6

What are characteristics of a command economy?

Accepted Answer

The central gov. sets prices on most goods and services., The central gov. owns all land and capital., The central gov. makes all economic decisions.

Question 7

Which of the following countries has a command economy?

Accepted Answer

Cuba, North Korea

Question 8

If the price of a good or service increases the demand will decrease.

Accepted Answer

True

Question 9

service is work that is done for us.

Accepted Answer

True

Question 10

What is revenue?

Accepted Answer

The $ a business receives from selling goods and services.

Question 11

What are the three types of resources?

Accepted Answer

Natural, human, and capital

Question 12

What is a trade off?

Accepted Answer

Giving up one alternative good or service for another.

Question 13

Where does supply & demand come from?

Accepted Answer

Producers and consumers

Question 14

What is true about a traditional economy?

Accepted Answer

Children tend to have the same jobs as their parents did.

Question 15

What is variable cost?

Accepted Answer

an expense that changes depending on how much a business produces.

Question 16

Demand is the desire people have for a good or service.

Accepted Answer

True

Question 17

Who are consumers?

Accepted Answer

People who buy the goods and services.

Question 18

What is human resource?

Accepted Answer

People who produce goods and services.

Question 19

The loss of four years of income resulting from the decision to go to college is..

Accepted Answer

Opportunity cost

Question 20

What are natural resources?

Accepted Answer

Raw materials supplied by nature.

Question 21

What are resources?

Accepted Answer

Limited, Things that can be used to make goods or services.

Question 22

What is competition?

Accepted Answer

a struggle among sellers to attract buyers, this keeps the price of a good, at a certain price. :0

Question 23

What is fixed cost?

Accepted Answer

An expense that does not change no matter how much the business produces.

Question 24

The four parts of demand are....

Accepted Answer

price, willing to buy, Able to buy, amount

Question 25

Who are producers?

Accepted Answer

People or businesses that provide/sell the goods and services.

Question 26

What is total cost?

Accepted Answer

Variable cost + fixed cost

Question 27

If resources are limited & wants are unlimited we have to...

Accepted Answer

Make a choice

Question 28

What is economics?

Accepted Answer

How ppl choose to use their lmtd resources to satisfy their unlmtd wants.

Question 29

Opportunity cost is the cost of the next best use of time or $ when choosing to do one thing or another.

Accepted Answer

True

Question 30

What will cause the supply of the product to decrease?

Accepted Answer

A decrease in consumer demand.

Question 31

What is the basic principle of law of demand?

Accepted Answer

The lower the price the more ppl will buy the good.

Question 32

Which of the following regulates the economic market & influences the price of goods?

Accepted Answer

Supply & Demand

Question 33

Which of the following are examples of fixed costs?

Accepted Answer

Salary, Rent

Question 34

Goods are things that we can touch or hold.

Accepted Answer

True

Question 35

What is true in a traditional economy?

Accepted Answer

the three economic questions are answered on the habit of custom/tradition, They are not likely to change over time.

Question 36

What is a market?

Accepted Answer

a place where buyers and sellers of the same good or service come together.

Question 37

What is true about a command economy?

Accepted Answer

The gov. makes all economic decisions., Government planners command the actions that the producers must follow.

Question 38

Choosing to buy a DVD player instead of something else is an example of...

Accepted Answer

Trade off

Question 39

What is true about a market economy?

Accepted Answer

They answer the three economic questions on the basis of profit and price., Each business makes decisions based on a desire to find the most profit.

Question 40

What is supply?

Accepted Answer

the amount of a good or service that producers are willing to sell., All of the above., the amount of a good or service that producers are willing to sell., the amount of a good or service that producers are willing to sell.

Question 41

When buyers will purchase exactly as much as sellers are willing to sell, what is this condition called?

Accepted Answer

Equilibrium

Question 42

A surplus of an item usually means that..

Accepted Answer

The price is too high.

Question 43

What is capital resource?

Accepted Answer

Money, products and supplies used in the production of goods & services.

Question 44

Scarcity is the basic economic problem because...

Accepted Answer

All resources are limited, but wants are not.

Question 45

Scarcity occurs whenever we do not have enough resources to produce all of the things we would like to have.

Accepted Answer

True

Economics test # 1

Questions 45

Economics test # 1

Questions 45