Eco Final Review

Portfolio diversification is a popular investment strategy because it quickly earns high profits.

Inflation causes people to

What are the characteristics of demand?

Changes in quantity demanded and changes in price have a(n) _____ relationship.

Social Security is one example of how Americans have modified their free enterprise economy.

A can of soup is an example of a

Which type of economy is most prevalent in the world today?

What kind of economy offers uniformity in wages regardless of individual productivity?

Which of the following is largely responsible for the growth of a free enterprise system?

Which of the following helps determine something's value?

Economic growth is necessary as a nation's population increases.

Which of these industries has the least elastic supply curve?

What have some states done to protect workers from adverse economic events such as layoffs and illnesses?

Which of the following states an advantage of a traditional economy?

The four factors of production are land, labor, capital, and

Which of these is a major advantage of a market economy?

Economic equity means that it is illegal to discriminate on the basis of age, sex, race, religion, or

Which statement describes a disadvantage of a command economy?

The hallmark of President Ronald Reagan’s administration was supply-side economic policies.

Scarcity is an economic problem with which all societies are faced.

Contributions to charity are not tax deductible.

Which of these would an item’s producer be most likely to do if total revenue on that item began to drop?

What test do economists use to measure elasticity?

Which of the following lists economic systems in order from least to most flexible?

Who ultimately determines the success of a product?

In all societies, the government decides what to produce.

____________ protect consumers against harm from products on the market.

In its role as protector of the American free enterprise system, one of the issues the government must deal with is

Both goods and services are counted as wealth.

Consumers are powerful because

Which of these best describes the influence of high prices on the behavior of producers?

Which product most likely has a demand that is inelastic?

To estimate elasticity, compare the _____ of a price change to the _____ of the change in total revenue.

When deciding how to use resources, you need to evaluate each choice to decide which meets your criteria.

A general rise in the level of prices over time is known as

What is the income effect?

A man is will pay high prices for food he is no longer hungry, he won't pay the high price. What best defines this ?

The economic system of the United States is considered a

Which of the following could raise the cost of production in a command economy?

On a demand curve, movement along the curve, as opposed to a shift in the entire curve, is a result of ___

Which of the following is a disadvantage of a market economy?

Which would an economist consider a likely complement for coffee?

The phrase "the customer is always right" is most often associated with what term?

How are economic transactions shaped in a traditional economy?

U.S. economic and social goals are likely to remain unchanged in the future.

Which would an economist consider a likely substitute for coffee?

One of the characteristics of a capitalist free enterprise economy is

How is the principle of “There’s No Such Thing As A Free Lunch” illustrated in a socialist economy?

Opportunity cost refers to

In general, people do not want their economic system to create as many jobs as possible.