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Module 1 - Introduction to Economic Concepts Flashcards | StudBud
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Module 1 - Introduction to Economic Concepts
Module 1 - Introduction to Economic Concepts
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1
What is an economic system?
An organized way of meeting wants and needs with goods and services
An organized way of allocating scarce factors of production
All of the above
An organized way of balancing interests between producers and consumers
2
Which of these are Adam Smith's three economic theories?
Visible Hand, Laissez-Faire, and Accumulation of Wealth
Indivisible Hand, Lazy Fair, and Accommodation of Wealth
Invisible Hand, Vanity Fair, and Accumulation of Wealth
Invisible Hand, Laissez-Faire, and Accumulation of Wealth
3
What would be an example of "land" as a factor of production?
The land where a car factory is located
The cars that the factory makes
The steel used to make the cars
The car factory itself
4
The American economy can best be described as what kind of economic system?
Market
Free enterprise
All of the above
Capitalist
5
What are the three questions that every economy must answer?
Who? What? Where?
What? How? Why?
What? Why? How?
What? How? For whom?
6
How do businesses in a market economy know what to produce?
The government tells them what to produce
All of the above
Consumers buy what they like, and businesses respond
They produce goods and services based on tradition
7
In the picture below, you have a bunch of different sellers all selling the exact same cucumbers. What is that called?
Monopolistic competition
Oligopoly
Pure competition
Monopoly
8
This woman is working in a laboratory because she is really good at it. This is an example of:
Market forces
Affirmative action
Gender equality
Specialization
9
You can choose to buy lots of different goods, like $6 Asparagus Water at Whole Foods, in what kind of economy?
Command
Traditional
All of the above
Market
10
Which factor of production creates innovation, new business, and higher profits?
Land
Capital
Entrepreneurship
Labor
11
What makes Elon Musk an entrepreneur?
He takes risks
His best chance for success is in a market economy
All of the above
He is motivated by profit
12
Which of the following do you and I buy on a regular basis?
Home goods
Consumer goods
Individual goods
Capital goods
13
Which of the following is a natural monopoly?
AmTrak
The New York subway system
All of the above
SDG&E
14
The government makes economic decisions in a ___________ economy.
Market
Command
Traditional
Government
15
Which of the following is an example of a voluntary exchange?
The government gives me your iPhone because I can't afford one
I see the high price of the iPhone at the Apple Store, so I buy it on eBay
I am issued an iPhone that I am forced to buy
I break into your house and steal your iPhone
16
Which of the following is an example of a geographic monopoly?
The Allsup's in a small Texas town
SDG&E
NOT SDG&E
The Dairy Queen in that same small Texas town
17
Which of the following is a service?
A dinosaur
A rocket-ship
Having somebody put creepy make-up on you
Lipstick
18
What happens when the government awards a patent or copyright to a new invention?
All of the above
Other companies cannot copy that new invention right away
The time, energy, and investment of entrepreneurship is protected
There is a technological monopoly
19
In a free-market economy like ours, who makes the economic decisions?
Businesses and consumers
Voters
The tribal council
The government
20
What is it called when you buy a SUPREME t-shirt when a plain white Hanes t-shirt will do just fine?
Conspicuous consumption
Flash
Conjunction junction
Spicuous consumption
21
Economic interdependence is when actions in the ___________ market affect the ________ market.
Product, factor
Household, business
Consumer, product
Durable goods, nondurable goods
22
What is a basic requirement for survival?
Need
Want
23
What kind of money would you use to buy a factory?
Financial capital
Type of money make you stay awake
Type of money you gon' need a safe
Type of money you gon' need a bank
24
What you give up when you make a choice:
Opportunity cost
Trade-off
25
Which of the following is a characteristic of a command economy?
Business and people have a lot of choice about what to make and buy
Economic decisions are based on tradition
It has the ability to change course rapidly (turn butter to guns)
Innovation and hard-work are rewarded
26
Choice:
Trade-off
Opportunity cost
27
A factory, heavy machinery, and tools used to produce consumer goods are called:
Business goods
Capital goods
Equipment goods
Technical goods
28
Which of the following is a disadvantage of a market economy?
All of the above
The government generally does not interfere
It can be difficult to know your role
Entrepreneurs are rewarded with profit
29
Verizon, AT&T, and Sprint-T-Mobile are an example of what?
Pure competition
Monopoly
Monopolistic competition
Oligopoly
30
I can do whatever I want with all these cans of soup:
Because soup is a free good
If I get permission from the tribal elders
Because it is my private property
If the government says I can
31
According to Adam Smith, what needs to happen for productivity to increase?
A business discovers more resources
The government orders it
The invisible hand makes it happen
Workers specialize and become more efficient
32
In the U.S. market system, which of the following is NOT an economic or social goal?
Fixed prices
Economic equality
Decreased competition
None of them are!
33
What is it called when a business promotes the education, health, well-being, and training of its employees?
An investment in human capital
An investment in labor capital
An investment in business capital
An investment in capital costs
34
If diamonds actually were useful, they would have:
Capability
Utility
Humility
Unitarianism
35
What is it called when there is just one seller of a good or service?
Monopolistic competition
Pure competition
Oligopoly
Monopoly
36
Why are diamonds valuable?
They have a high worth expressed in money
Honestly...why ARE they?
They are very useful
They are scarce
37
What is it called when sellers differentiate their products based on branding, warranty, quality, and advertising?
Oligoply
Monopolistic competition
Monopoly
Pure competition
38
What are the four factors of production?
Wind, fire, water, earth
Land, labor, capital, cruise ship
Land, labor, capital, entrepreneurship
Entrepreneurship, money, labor, equipment
