Econ Unit 1 Review

Question 1

What does "laissez faire" mean?

Accepted Answer

Leave things alone

Question 2

What Market Economy Characteristic is about the freedom to trade or not as a buyer or a seller?

Accepted Answer

Voluntary Exchange

Question 3

Which of the following are advantages of the Traditional Economic System?

Accepted Answer

There is agreement over the answers to the 3 basic questions

Question 4

Highways, mass transit, education, and healthcare systems are all examples of what?

Accepted Answer

Infrastructure

Question 5

What is another name for a Free Enterprise system?

Accepted Answer

Capitalism

Question 6

Which of the following are disadvantages of the Traditional Economic System?

Accepted Answer

Low Productivity, Little Freedom of Choice for individuals, Resistance to Change, Low standards of living

Question 7

Which of the following are advantages of a Command Economy?

Accepted Answer

Govt works for the best interests of EVERYONE in the country, Gov't can distribute resources equally

Question 8

Which of the following is NOT a Factor of Production?

Accepted Answer

Scarcity

Question 9

In what system do central planners in the government determine income distribution?

Accepted Answer

Communism

Question 10

What's the term for government programs designed to protect people from economic hardship?

Accepted Answer

Safety Net

Question 11

What is "Labor" in Economics?

Accepted Answer

The human effort & time that go to production, ex: work.

Question 12

Who wrote an economic study called Das Capital and considered the father of modern communism?

Accepted Answer

Karl Marx

Question 13

What is the basic economic problem?

Accepted Answer

Scarcity

Question 14

What are the 3 Basic Economic Questions?

Accepted Answer

How will things be produced?, What will be produced?, For whom will things be produced?

Question 15

What does "TANSTAAFL" MEAN?

Accepted Answer

Every Decision means giving up something

Question 16

What is the definition of a "Need?"

Accepted Answer

Something required for your survival.

Question 17

What Market Economy Characteristic is about people's choices of which products get produced?

Accepted Answer

Consumer Sovereignty

Question 18

What is an Opportunity Cost?

Accepted Answer

The value of something that is given up

Question 19

Which of the following are NOT part of the arrow-flow between Government and Businesses

Accepted Answer

Labor

Question 20

What is Marginal Benefit?

Accepted Answer

The gain/profit per unit of product/service sold

Question 21

In what system are workers employed by private business OR the government?

Accepted Answer

Socialism

Question 22

What is "Land" in Economics?

Accepted Answer

Natural resources that go to production, ex: oil or wind.

Question 23

What is the definition of a "Want?"

Accepted Answer

Something you prefer, but don't need in order to survive.

Question 24

Which kind of basic economic system involves the government making most economic decisions?

Accepted Answer

Command/Authoritarian/Centrally Planned

Question 25

What is the effort of 2+ independent actors offering the best deal in order to get business?

Accepted Answer

Competition

Question 26

What is Marginal Cost?

Accepted Answer

The cost/loss per unit of product/service sold

Question 27

In what system does government own ALL resources?

Accepted Answer

Communism

Question 28

What is "Capital" in Economics?

Accepted Answer

Non-natural resources that go to production, ex: factories.

Question 29

What's the term for government payment that helps cover the cost of an economic activity?

Accepted Answer

Subsidies

Question 30

Which kind of basic economic system is based upon individual choice?

Accepted Answer

Market

Question 31

What is another term for a Command Economy?

Accepted Answer

Centrally Planned, Authoritarian

Question 32

What is the process of changing from government ownership to private ownership?

Accepted Answer

Privatization

Question 33

What is Profit?

Accepted Answer

Financial gains minus costs of production

Question 34

In what system are basic resources controlled by government and the rest are privately owned?

Accepted Answer

Socialism

Question 35

What is the most common economic system? The USA is one of these.

Accepted Answer

Mixed Market

Question 36

What does "TANSTAAFL" stand for?

Accepted Answer

There Ain't No Such Thing As A Free Lunch

Question 37

What's the term for a side effect of an economic transaction that affects a 3rd party?

Accepted Answer

Externality

Question 38

Select ALL of the following options that are a basic type of Economic System

Accepted Answer

Market, Command/Authoritarian/Centrally Planned, Traditional

Question 39

Most people/organizations are motivated by what?

Accepted Answer

Profit

Question 40

What Market Economy Characteristic is about protection of people's goods?

Accepted Answer

Private Property Rights

Question 41

What is a trade-off?

Accepted Answer

Something you give up

Question 42

What's the term for goods/services provided by gov't and consumed by the public as a group?

Accepted Answer

Public Goods

Question 43

Which kind of basic economic system involves making economic choices based upon customs?

Accepted Answer

Traditional

Question 44

What Market Economy Characteristic is about the focus of individuals in certain areas?

Accepted Answer

Specialization

Question 45

What is "Entrepreneurship" in Economics?

Accepted Answer

Exceptional human part of production, ex: Vision, risktaking

Question 46

What is the process of changing from private ownership to government ownership?

Accepted Answer

Nationalization

Econ Unit 1 Review

Questions 46

Econ Unit 1 Review

Questions 46