Which of the following is NOT true about inflation?

A higher inflation rate means money is worth more

Nations must answer 3 basic economic questions. Which of the following is NOT one of them?

Where should we sell our goods and services?

Which of the following is TRUE about capitalism?

The political system is usually a democracy

Which of the following is TRUE concerning the unemployment rate?

The higher it is the greater the chance of economic slowdown

Way a country provides for the wants and needs of its people

Which of the following is NOT true about a command economy?

The government provides programs for those who need help

Which of the following is true about a market economy?

There is no government involvement in economic decisions.

Which of the following is TRUE about socialism?

There are more social services like free medical care

Which of the following is true about a traditional economy?

Based on practices that have been passed on from ancestors

Which of the following is true about scarcity?

It is the limited supply of resources

Which of the following is NOT true about communism?

Entrepreneurship and competition are important

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MP Economics

30 termsStudBud Administration1,147 plays

Unit 5

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Questions 30

Answers

1
Which of the following is NOT true about inflation?
A low inflation rate (1%-5%) is good
A higher inflation rate means money is worth more
It refers to rising prices
A double-digit inflation rate devastates an economy
2
Nations must answer 3 basic economic questions. Which of the following is NOT one of them?
What goods/services should be produced?
Where should we sell our goods and services?
How should the goods/services be produced?
For whom should the goods and services be produced?
3
Which of the following is a market economy?
Villages in South America
Russia
Australia
Cuba
4
Demand is greater than supply
Shortage
Equilibrium
Surplus
Profit
5
Which of the following is TRUE about capitalism?
The political system is usually a democracy
The government assigns housing, schools, and occupations
The main goal is to keep prices low and provide employment
There is little to no economic freedom
6
Which phase of the business cycle is when the economy is strong and there is low unemployment?
Expansion
Depression
Trough
Recession
7
Supply is greater than demand
Competition
Shortage
Equilibrium
Surplus
8
Which of the following is TRUE concerning the unemployment rate?
Not many nations keep track of this.
It isn't that important
It is a measure of how many people have jobs
The higher it is the greater the chance of economic slowdown
9
Which of the following is NOT a goal of a healthy economy?
Increased productivity
Nice houses for everyone
Decrease unemployment
Stable prices
10
The consumer price index and the producer price index measure what?
GDP
Productivity
Unemployment
Inflation
11
An economy is
The government
Way a country provides for the wants and needs of its people
All the things used to product goods and services
The people who make money
12
Which of the following is NOT true about a command economy?
The government provides programs for those who need help
The government decides who receives what is produced
The Government controls the factors of production
The Government makes all the decisions
13
Which of the following is true about a market economy?
The Government controls everything and makes the decisions
Animal gathering is how most people earn their living.
There is no government involvement in economic decisions.
Based on practices passed on from ancestors
14
Which of the following is TRUE about socialism?
Cuba, North Korea, and China are examples
There are more social services like free medical care
The government assigns housing, schools, and occupations
The United States and Japan are examples
15
Which of the following is a command economy?
Australia
North Korea
USA
Switzerland
16
Customer willingness to buy a product
Profit
Demand
Supply
Equilibrium
17
Which of the following is true about a traditional economy?
Customers make economic decisions through their purchases.
Government controls everything and makes decisions
Based on practices that have been passed on from ancestors
Government provides social programs for those who need help
18
When price goes up, demand goes up.
True
False
19
When price goes up, supply goes up.
False
True
20
Which of the following is true about scarcity?
It is the limited supply of resources
Every country has all the resources they need
Scarcity is not a big deal
It is one of the factors of production
21
Which of the following is NOT true about communism?
There is only one political party
Entrepreneurship and competition are important
The government assigns housing, schools, and occupations
The government runs everything
22
There are 3 types of economies. Which of the following is NOT one of them?
Future
Market
Traditional
Command
23
The amount of product producers are willing to make and sell
Demand
Equilibrium
Supply
Surplus
24
Which phase of the business cycle is a period of economic slowdown for at least 6 months?
Expansion
Recession
Recovery
Trough
25
Which is a time when it is nearly impossible to find a job and poverty results?
Recovery
Depression
Expansion
Trough
26
Which of the following is NOT a factor of production?
Entrepreneurship
Labor
Factories
Land
27
Which of the following is a traditional economy?
Cuba
USA
Villages in South America
Germany
28
When supply and demand are equal
Surplus
Shortage
Equilibrium
Profit
29
Which of the following is true?
There are a lot of true market economies
All economies are mixed
There are a lot of true command economies
Most economies are mixed
30
Which of the following is NOT an economic measure?
Scarcity
Inflation rate
Unemployment rate
GDP

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