Economics Unit 1 Review

Question 1

Why do manufacturers sell products?

Accepted Answer

To make a profit

Question 2

What is the focus of socialism?

Accepted Answer

Even distribution of wealth, Some private property

Question 3

What are the government's three goals to promote economic growth?

Accepted Answer

High employment, growth, stability

Question 4

Who argued that a free market would regulate itself with little government involvement?

Accepted Answer

Adam Smith

Question 5

What makes up the "invisible hand"?

Accepted Answer

Competition and self-interest

Question 6

Which of the following is an example of human capital?

Accepted Answer

Electrician's experience, Master's degree

Question 7

Who faces trade-offs?

Accepted Answer

All of these

Question 8

How can the government limit negative externalities associated with a new highway?

Accepted Answer

Build noise barriers

Question 9

If I go from Point C to Point B, what is the opportunity cost associated with this movement?

Accepted Answer

2 trucks

Question 10

A production possibilities curve shows the relationship between the production of what?

Accepted Answer

Any two categories of goods

Question 11

What is an externality?

Accepted Answer

Additional consequences of a decision

Question 12

According to Adam Smith, the self-regulating nature of the market is guided by what?

Accepted Answer

"invisible hand"

Question 13

Which of the following would be considered land?

Accepted Answer

Water, Natural gas

Question 14

The United States's mixed economy is...

Accepted Answer

based on a free market allowing some government involvement

Question 15

In a command economy, the government...

Accepted Answer

makes all economic decisions

Question 16

What is important to a traditional economy?

Accepted Answer

Tradition, Small communities

Question 17

Which of the following is NOT one of the essential economic questions?

Accepted Answer

Who produces goods and services?

Question 18

When does the government provide public goods?

Accepted Answer

When the benefits outweigh the costs

Question 19

What does specialization do for an economy?

Accepted Answer

Makes production more efficient

Question 20

Which of the following is NOT a factor of production?

Accepted Answer

Scarcity

Question 21

There is NO difference between socialism and communism.

Accepted Answer

False

Question 22

Why might government involvement in the economy be useful?

Accepted Answer

It can meet some needs and wants that the market can't

Question 23

The idea that there are unlimited wants for limited resources is called what?

Accepted Answer

Scarcity

Question 24

Which of the following is an example of a public good?

Accepted Answer

Highway system, Bench

Question 25

If I choose between two summer jobs, the one I do not choose is the ______ of my decision.

Accepted Answer

Opportunity cost

Economics Unit 1 Review

Questions 25

Economics Unit 1 Review

Questions 25