Economics Review

Question 1

A production possibilities curve illustrates

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Combinations of two goods or services that can be produced

Question 2

An economic system in which people are free to buy, sell, and produce whatever they want is a(n)

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free market economy

Question 3

The things that people use to make or obtain what they need and want are called

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resources

Question 4

The use of the smallest amount of resources to produce the greatest amount of output is

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efficiency

Question 5

A products usefulness is called its

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utility

Question 6

Goods that are owned by individuals and businesses are

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private property

Question 7

The study of choices that people make to satisfy their wants and needs is

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economics

Question 8

In pure free market economies, the basic economic decisions are made by

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individuals

Question 9

Market failure when the market is wasting resources and producing goods at a higher than necessary cost

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productive inefficiency

Question 10

The organizational abilities and risk-taking involved in starting a new business or introducing a new product is called

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entrepreneurship

Question 11

Participants move forward with a decision when

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marginal benefit\gemarginal cost

Question 12

Food, clothing, and shelter are examples of

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needs

Question 13

The feature that distinguishes the US economy from the pure free market model is

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limited government involvement

Question 14

Producers and consumers agreeing to provide one type of item in return for another is called

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exchange

Question 15

Which of the following economic goals is concerned with making the best use of scarce resources?

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efficiency

Question 16

Because the economic system of the United States is based on the freedom to make choices, it is often referred to as a

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Free-enterprise system

Question 17

In the United States, individuals engage in competition and make decisions based on

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Self-Interest

Question 18

The level of output that results from a given level of input is called

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productivity

Question 19

The economic system in which the government’s role is the most limited is

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capitalism

Question 20

The naturally occurring phenomena that corrects the free market through self-interest, competition, and incentives

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invisible hand

Question 21

The economic rivalry that develops among businesses selling the same or similar products is called

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competition

Question 22

Economists classify a country’s economy based on their

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degree of government control

Question 23

The incentive of government in the economic system is to

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maximize general social welfare

Question 24

This is determined by a product’s scarcity and utility

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price

Question 25

The basic problem of economics is

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scarcity

Question 26

Macroeconomics is the study of

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entire economies

Question 27

Both firms and government seek the goal of

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Both a and b.

Question 28

What term is used for the value of the next best alternative given up in order to obtain an item or pursue an activity?

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opportunity cost

Question 29

The use of technical knowledge and methods to create new products or make existing products more efficiently is called

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technology

Question 30

The value of the next best alternative given up in order to obtain an item or pursue and activity is

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opportunity cost

Question 31

Finished products intended for personal use are

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consumer goods

Question 32

During the Old Kingdom of Egypt, when the pharaoh owned the land, collected taxes, and controlled all trade, they had a

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Command economy

Question 33

The mixed economies that are closest to the pure free market model are said to practice

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capitalism

Economics Review

Questions 33

Economics Review

Questions 33