Economics Unit 1

Question 1

Where do firms sell finished goods and services?

Accepted Answer

product market

Question 2

What concept does the curve itself illustrate?

Accepted Answer

scarcity

Question 3

At which point is production innefficient?

Accepted Answer

C

Question 4

Which of the following best describes the cost vs. benefits principle?

Accepted Answer

choosing something when benefits are greater than costs

Question 5

Person who organizes the factors of production

Accepted Answer

entrepreneur

Question 6

What concept does movement from A to B illulstrate?

Accepted Answer

opportunity cost

Question 7

Adam Smith can best be described as a supporter of

Accepted Answer

free markets

Question 8

Which two items best describe a pure free market?

Accepted Answer

self-interest and voluntary exchanges

Question 9

Who wrote the Wealth of Nations?

Accepted Answer

Adam Smith

Question 10

Karl Marx can best be described as a supporter of

Accepted Answer

command markets

Question 11

What condition causes people to distinguish between needs and wants?

Accepted Answer

scarcity

Question 12

Who wrote the Communist Manifesto?

Accepted Answer

Karl Marx

Question 13

Using resources to maximize productivity is known as

Accepted Answer

efficiency

Question 14

Which two items best describe a command market?

Accepted Answer

government directives and regulation

Question 15

Which of the following best describes the economic law of comparative advantage?

Accepted Answer

producing goods at lower opportunity cost than competitors

Question 16

Where do households sell the factors of production?

Accepted Answer

factor market

Question 17

The value of the next best alternative is

Accepted Answer

opportunity cost

Question 18

People who create and sell products or services are:

Accepted Answer

producers

Question 19

What two character traits are assumed of people that act in a capitalistic market system?

Accepted Answer

rational and self-interested

Question 20

Decisions in a mixed economy are made by

Accepted Answer

firms and government

Question 21

At which point is maximum productive efficiency achieved?

Accepted Answer

B, A

Question 22

At which point is production impossible?

Accepted Answer

D

Question 23

Branch of knowledge concerned with production, consumption, and transfer of wealth.

Accepted Answer

economics

Question 24

What is the invisible hand that directs the marketplace?

Accepted Answer

self-interest

Question 25

Term for process where natural aptitude is used to determine who is most suited for a task.

Accepted Answer

specialization

Question 26

Limited resources and unlimited desires best describe the concept of

Accepted Answer

scarcity

Question 27

Economist who advocated for government regulation to lessen severity of business cycles.

Accepted Answer

John Maynard Keynes

Question 28

The factors of production are

Accepted Answer

land, labor, capital.

Economics Unit 1

Questions 28

Economics Unit 1

Questions 28