Unit 1 Economics: Economic Systems and Socio-Economic Goals

Question 1

Insuring best use of resources with no waste

Accepted Answer

Economic Efficency

Question 2

Which of the following is necessary for a market economy?

Accepted Answer

Individuals own all resources

Question 3

Which goal is best promoted by Medicare programs that help an aging population?

Accepted Answer

Security

Question 4

In a centrally planned (command) economy, the decision of what should be produced is made

Accepted Answer

by political leaders and government experts.

Question 5

Economic systems deal with problems caused by

Accepted Answer

Scarcity

Question 6

Prices do not fluctuate rapidly - little or no inflation or deflation

Accepted Answer

Economic stability

Question 7

Economic freedom tends to positively effect which of the following?

Accepted Answer

Efficiency

Question 8

Economic systems are influenced by

Accepted Answer

values, Socio-economic goals

Question 9

Which of the following is not one of the 3 major economic systems?

Accepted Answer

Communism

Question 10

In Communist countries, all workers make the same pay regardless of their job. This promotes

Accepted Answer

equity

Question 11

Individual choice of what to produce, who produces, and who receives

Accepted Answer

Economic Freedom

Question 12

The circular flow model shows the relationship between which 2?

Accepted Answer

Income and spending, Businesses and households

Question 13

Protection against economic risks such as unemployment and poverty

Accepted Answer

Economic Security

Question 14

What is the most important incentive that motivates most businesses in the U.S.?

Accepted Answer

Profit motive (making a profit)

Question 15

In a market economy, prices provide information to consumers and businesses. So prices . . .

Accepted Answer

tell businesses the value consumers place on goods.

Question 16

Paying workers more when they work harder promotes

Accepted Answer

efficiency

Question 17

Which socio-economic goal is best represented by having few rules to start a business?

Accepted Answer

Freedom

Question 18

People in the society consider the distribution of resources to be fair

Accepted Answer

Economic equity

Question 19

What is an economic system?

Accepted Answer

How a society decides to produce and distribute goods.

Question 20

Adam Smith argued the "invisible hand" regulates the free market through:

Accepted Answer

competition and self-interest

Question 21

Which of the following goals is difficult to achieve in a free market system

Accepted Answer

Equity

Question 22

Whose decisions have the most influence in a market economy?

Accepted Answer

Individuals

Question 23

Which does the government provide as a safety net and to meet the goal of economic security?

Accepted Answer

welfare benefits

Question 24

Whose decisions have the most influence in a command/centrally planned economy?

Accepted Answer

Government

Question 25

Which of the following is not one of the three questions:

Accepted Answer

How much should be charged for what is produced?

Question 26

Increasing the productive capacity of the economy - PPC shifts outward

Accepted Answer

Economic growth

Question 27

Which goal is promoted by government grants that support innovation?

Accepted Answer

Growth

Question 28

A country's labor resources are used to capacity with jobs at the natural rate

Accepted Answer

Full employment

Question 29

Whose decisions have the most influence in a mixed economy?

Accepted Answer

Individuals and Government

Question 30

All of the following exist in the U.S. economy. Which prevents it from being a free market?

Accepted Answer

government involvement in the economy

Unit 1 Economics: Economic Systems and Socio-Economic Goals

Questions 30

Unit 1 Economics: Economic Systems and Socio-Economic Goals

Questions 30