Econ- Test 1

Question 1

Which concept deals with how the market regulates itself through competition and self-interest

Accepted Answer

The Invisible Hand

Question 2

Which economic goals/values are based on a nation’s priorities and values

Accepted Answer

Other Goals

Question 3

Which Economic goal/value is about making the most of a country's resources

Accepted Answer

Economic Efficiency

Question 4

Producers cannot offer goods and services at current prices

Accepted Answer

Shortage

Question 5

Which of the following is NOT a reason why the Communist economy of the USSR collapsed

Accepted Answer

Too much Consumer Sovereignty

Question 6

What is the most common economy in the modern day?

Accepted Answer

Mixed Economy

Question 7

In which type of economy does the government make all the decisions and control production

Accepted Answer

Command

Question 8

What is the motivating force behind the Free Market?

Accepted Answer

Self-Interest

Question 9

Which economic goal/value deals with freedom from government intervention in economic affairs

Accepted Answer

Economic Freedom

Question 10

Which of the following DOES NOT go in a Decision Making Grid

Accepted Answer

Value

Question 11

Why are the factor and product markets different for market and mixed economies?

Accepted Answer

No government in Market Economy

Question 12

Which of the following is an example of a Safety Net in the US Economy

Accepted Answer

Welfare

Question 13

Firms in a of a Circular Flow Diagram of a Market/Mixed Economy represent

Accepted Answer

Businesses or organizations

Question 14

Which economic goal/value provides assurance that economic affairs run smoothly

Accepted Answer

Economic Security and Predictability

Question 15

Who is considered the father of modern day Capitalism?

Accepted Answer

Adam Smith

Question 16

The outer ring of a Circular Flow Diagram of a Market/Mixed Economy represents

Accepted Answer

Flow of money

Question 17

Which economic goal/value works toward a higher standard of living?

Accepted Answer

Economic Growth and Innovation

Question 18

Households in a Circular Flow Diagram of a Market/Mixed Economy represent

Accepted Answer

Person or group of people living in the same place

Question 19

Arrangement that allows buyers and sellers to exchange things is known as

Accepted Answer

Market

Question 20

Deciding how much more or less to do

Accepted Answer

Thinking at the Margin

Question 21

Limited Quantities of resources to meet unlimited Wants

Accepted Answer

Scarcity

Question 22

When a shift occurs in production of two goods, the price of one of the goods will increase

Accepted Answer

Law of Increasing Cost

Question 23

Philosophy based on the idea of equal distribution of wealth through a democratic means

Accepted Answer

Socialism

Question 24

Political system in which all economic and political power is in the hands of the government

Accepted Answer

Communism

Question 25

Which economic goal/value seek to create a fair distribution of wealth

Accepted Answer

Economic Equity

Question 26

What type of economy is based on traditions, customs, and beliefs shaping production

Accepted Answer

Traditional Economy

Question 27

Which of the following countries has mostly a traditional economy?

Accepted Answer

Haiti

Question 28

The inner ring of a Circular Flow Diagram of a Market/Mixed Economy represents

Accepted Answer

Flow of Resources/Products

Question 29

Economic system in which a country's economy is controlled by private owners

Accepted Answer

Capitalism

Question 30

Knowledge and skills that a worker gains through experience and education is

Accepted Answer

Human Capital

Econ- Test 1

Questions 30

Econ- Test 1

Questions 30