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econ unit 1 review
econ unit 1 review
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Econ unit 1
Flashcards
43 cards
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Practice quiz
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Questions
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Answers
1
What is the production possibilities frontier or curve?
a line that shows the only way resources can be used
a line that shows when resources are underutilized
a line that shows how resources can be used in the future
a line that shows how an economy's resources are best used
2
Who is Cornelius Vanderbilt?
Banking Tycoon
Oil Tycoon
Steel Tycoon
Railroad Tycoon
3
Which of the following is a summary of the three key economic questions?
What how and for whom should goods and services be produced
Who will buy which goods and services, and how much they pay
how, when, and from whom should consumers get what they want
Who consumes these goods and services
4
To earn the most pay, what is the trade-off?
you will lose five hours of study time
you can study for an extra hour
There won't be any trade-off, only benefits
you will have a balance of work and study time
5
What is one way government could limit negative externalities of a new highway
charge higher tolls
increase the speed limit
limit the number of vehicles
build noise barriers nearby
6
Which of the following describes a centrally planned economy?
The central government makes all economic decisions.
The central government follows laissez-faire policies.
The central government lets the market set wages for jobs.
The central government lets factories set their own goals.
7
A market failure occurs when a free market is unable to
meet government regulations
encourage innovation
distribute resources efficiently
provide open opportunity
8
a new high school has opened and the citizens complain to local officials about the traffic
market failure
thems the breaks kid
negative externality
positive extrenality
9
Where are traditional economies usually found?
in large communities that welcome change
in small communities that avoid change
in small communities that welcome change
in large communities that deal with economic disasters
10
public radio station has raised $, you do not contribute, but still, listen what is this called
free rider
market failure
negative externality
in-kind benefit
11
Which statement best describes the role of government in a free enterprise system?
it follows a strict policy of laissez faire
it regulates businesses when public interests is involved
It controls all decisions about business activities
it forms companies then highers managers to run them
12
Which is a positive externality of a new school?
students purchases at nearby stores
more traffic on the roads
more noises in the neighborhood
a raise in property taxes
13
human capital includes
the machinery run by a seamstress to weave cloth
the salary paid to an accountant
the knowledge a taxi driver has of the city streets
the equipment used by a doctor to cure a patient
14
right of a government to take private property for public use
legal equality
rule of public use laws
eminent domain
private property domain
15
A person who believes that wealth should be evenly distributed throughout society is
a capitalist.
a communist.
a socialist.
an entrepreneur.
16
What is a public good?
one that the market provides
It is a good, that the government taxes
a good limited to the poor
a good whose benefits to society are > the total cost
17
Why do people need to buy and sell products or services?
We need to maintain a competitive society
No one is self-sufficient
People need to provide the market with goods and services
people need to buy and sell products to make a profit
18
which programs provide health insurance for older people, poor people, and disabled people?
Medicare and Medicaid
Workers' compensation and unemployment insurance
welfare and SCHIP
TANF and Social Security
19
If you choose between two summer jobs, the one you do not choose is the _____ of your decision.
opportunity at the margin
trade-off
opportunity cost
decision at the margin
20
The United States government intervenes in the economy in order to
impose barriers on foreign trade
protect laissez-faire
promote the general welfare
provide competition for private firms
21
Which statement best describes the role of government in a free enterprise system?
controls all decisions about business, including profit made
regulates businesses when the public interest is involved.
It follows a strict policy of laissez-faire.
forms companies and then allow individuals to run them.
22
What are the government's three goals for promoting economic strength
high employment, increased spending, and low taxes
high employment, steady growth, and stability
low unemployment, low prices, and low taxes
steady growth, high prices, and innovation
23
Which of the following are factors of production?
economics and business decisions
technology and productivity
capital and land
scarcity and shortages
24
What type of economy does the picture represent?
laissez-faire
free enterprise
centrally planned
mixed
25
Which of the following philosophers argued that a free market would regulate itself
Friedrich Engels
Adam Smith
Vladimir Lenin
Karl Marx
26
In a free enterprise system, how do consumers most often express their desires to businesses?
e-mailing or texting the companies
buying or not buying products
hiring lobbyists to speak for them
protesting and boycotting products
27
Which of the following might be a positive aspect of centrally planned economies?
low unemployment due to guaranteed jobs
a quick adjustment to changing conditions
high level of consumer satisfaction
incentives for workers to be innovative
28
Why does every decision involve a trade-off
decisions are all different
resources are limited
incomes are not equal
everyone has to make a decision
29
An economy that is producing the maximum amount of goods and services is considered
efficient
growing
trade-off
underutilized
30
Why does the government protect inventors by offering them patents and copyrights
to encourage free trade
to promote innovation
to strengthen American culture
to regulate the business cycle
31
Sulley and Wazowski work at Monsters, Inc. Monsters, Inc. is an example of a
public good
Land
labor
private good
32
Which set of nations have a more dominant centrally planned economy
North Korea, Cuba, the Soviet Union
The Soviet Union, Hong Kong, Sweden
United States, Canada, Japan
United States, Hong Kong, Singapore, United Kingdom
33
What is not a way the Constitution protects the free enterprise system
it spells out the rights of the consumers
It allows us to make contracts
It protects private property
It allows for eminent domain
34
What does the economic concept of "guns or butter" mean?
a government decides to make military or domestic goods
people choose between guns or food
the government can buy unlimited military and consumer goods
the government must make guns and butter
35
qualifying for Section 8 housing provides housing at reduced cost what type benefit is this?
faith-based initiative
cash transfer
in-kind benefits
Social Security benefit
36
the study of economics behavior and decision making in a nation's whole economy
holy mackerel
macroeconomics
microeconomics
macrame
37
you can still use Hinkley Park even though you did not pay property taxes for it
a market failure
a positive externality
a negative externality
free-rider problem
38
Under a system of voluntary exchange, final decisions are made by
producers
free riders
the government
consumers
39
The United States economy is a mixed economy
based on a free market, allowing some gov intervention
based on a free market, with no government intervention
based on centrally planned, with limited gov intervention
based on a traditional, allowing some gov intervention
40
to improve its standard of living, a nation's economy must
allow the central government to make economic decisions
reach economic equity
grow through innovation
remain stable
41
What "invisible hand" regulates the free market economy?
competition between firms
specialization
incentives and effeciency
competition and self-interest
42
What is one-way new technology helps the United States improve its standard of living?
reduces unemployment
increases economic stability
increases productivity
prevents sudden price changes
43
The picture is of Central Park in New York, what kind of good is Central Park?
public good
physical good
capital good
private good
