How can a government promote economic growth in order to boost its citizens standard of living?

by providing patent and copyright protection for innovation

Which of the following actions would increase a country's standard of living?

commitment to make community college free all residents

One example of an entrepreneur is

an artist who runs a business painting murals in buildings

Which economic changed best explains a reduction in coffee prices?

improved technology for commercial production of coffee

Which of the following would be the BEST decision to make in order to maximize profit?

when marginal cost equals marginal benefit

In a market economy, the strongest incentive for entrepreneurship is the opportunity to

earn a profit by taking risk in goods & services

What are the four factors of production required for industrialization?

capital, entrepreneurs, labor, natural resources

Which statement best describes an immediate result of OPEC reducing supply of oil to the US?

oil prices in the US would rise

Why are price floors used by the government?

to prevent prices, including wages, from dropping too low

Which of the following is a correct statement about monopolies?

they set their price to maximize profit

Which of the following lists of factors of production would an economist categorize as land?

iron ore, natural gas, fertile soil, water

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Economics Essential Vocabulary

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Questions 26

Answers

1
What is the idea that goods and services are limited?
scarcity
underutilization
shortage
opportunity cost
2
How can a government promote economic growth in order to boost its citizens standard of living?
increasing regulations restricting the use of new technology
increasing taxes on corporate investments in new technology
promote using obsolete production techniques
by providing patent and copyright protection for innovation
3
Which of the following actions would increase a country's standard of living?
decrease in spending on infrastructure like roads & bridges
reduction of state parks and public recreation areas
commitment to make community college free all residents
commitment to allow hazardous chemicals used in foods
4
One example of an entrepreneur is
an ice skater who is part of a professional ice show
an artist who runs a business painting murals in buildings
a secretary that specializes in business law
a writer hired by a film studio to adapt a book into a movie
5
Which economic changed best explains a reduction in coffee prices?
heavy rains destroy the coffee crop in Latin America
rapid wage increases for workers processing coffee beans
improved technology for commercial production of coffee
6
Which of the following would be the BEST decision to make in order to maximize profit?
when marginal cost is less than the marginal benefit
when price of product is less than cost of producing it
when marginal cost equals marginal benefit
when the marginal cost is greater than the marginal benefit
7
The primary role of government in a market economy is to:
protect private property
guarantee profits for all items
own all factors of production
determine prices for all goods
8
In a market economy, the strongest incentive for entrepreneurship is the opportunity to
support projects, like parks & playgrounds, for public goods
earn a profit by taking risk in goods & services
determine regulatory & tax policies for all types of firms
gain personal prestige & fame for an invention
9
What are the four factors of production required for industrialization?
specialization, trade, markets, consumerism
interest, profit, demand, disposable income
capital, entrepreneurs, labor, natural resources
goods, services, wages, technology
10
Which statement best describes an immediate result of OPEC reducing supply of oil to the US?
oil prices in the US would rise
US would halt the sale of fuel to China
Oil production in the US would rise
US would increase research for alternative fuels
11
What is a government intervention in a market that affects the production of a good?
regulation
law
act
rule
12
What is a contest for the dollars of consumers?
competition
profit
incentive
capitalism
13
What is the effort people devote to tasks for which they are paid considered?
employment
land
capital
labor
14
Which of the following is an example of nonprice competition?
collusion
price wars
product advertising
formation of cartels
15
College graduates are a segment of which factor of production?
labor
goods
profit
land
16
Which term accurately describes the economic problem of unlimited wants & limited resources?
diminishing returns
opportunity cost
scarcity
marginal cost
17
What market structure has many buyers & sellers, identical products, & free market entry & exit
perfect competition
oligopoly
monopoly
monopolistic competition
18
What is the removal of government controls over a market called?
trade-off
regulation removal
deregulation
efficiency
19
When the quantity demanded for a product is less than the quantity supplied, the market?
has a surplus of products
price is too low
has a shortage of products
is in equilibrium
20
Why are price floors used by the government?
to maintain profitable prices for companies
to lower production cossts
to prevent prices, including wages, from dropping too low
to guarantee supply of a product
21
What is the license given to an inventor for the creation of a new product called?
inventor's license
patent
copyright
investment
22
In what kind of economy does the government make all the decisions?
laissez faire
mixed
free enterprise
centrally planned
23
What is one of the most important advantages of a free market?
it protects the less fortunate
it encourages growth
it is easy to regulate
it distributes goods equally
24
Which of the following is a correct statement about monopolies?
prices are determined by the government
monopolies cannot practice discrimination
they set their price to maximize profit
they will charge any price they want regardless of consumers
25
Which of the following lists of factors of production would an economist categorize as land?
farm fields, tractors, pesticides, fertilizers
iron ore, natural gas, fertile soil, water
dams, bridges, rock quarries, oil wells
factories, office buildings, assembly lines, workers
26
What two systems were linked in the Soviet Union and China?
the free market and democracy
traditional economy and authoritarianism
socialism and democracy
communism and central planning

Economics Essential Vocabulary Flashcards | StudBud