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Econ- UNIT 1 Review Flashcards | StudBud
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Econ- UNIT 1 Review
Econ- UNIT 1 Review
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1
What economy has centralized planning and Individual incentives are not rewarded
command
mixed market
market
traditional economy
2
In a production possibilities graph, what
MIGHT
cause the curve (frontier) to move to the left (shift inward)?
Increased demand for basketballs
New innovative equipment and computer technology
A shortage of needed raw materials/ resources
An increase in the number of workers
3
When a society invests in education, how is it improving its productivity?
by investing in entrepreneurship
by investing in human capital
by investing in capital goods
by increasing international trade
4
What does a point inside the PPC graph above indicate?
productive efficiency of available resources
less resources are required
more resources are required
inefficient use of available resources
5
Jan opened a bakery and purchased an oven which makes 20 loaves of bread at a time. This oven represents which factor?
labor
capital
entrepreneurship
land
6
Mineral resources (iron, gold, etc.) in economics are categorized as
capital
entrepreneurship
labor
land
7
The first piece of pizza is satisfying but the more you eat, satisfaction decreases. What is this called?
law of diminishing marginal utility
law of increasing opportunity costs
law of self-interest
law of demand
8
Which of these terms is the BEST synonym for the word “entrepreneur?”
student
home owner
employee
risk-taker
9
The tools, skills, knowledge, and machines created and used by humans is known as
labor
capital
business
land
10
In a "mixed economy".... Who or what provides public goods such as roads, hospitals, schools, etc.?
both consumers and producers work together to produce public goods
firms / businesses / producers
consumers
government
11
If a law passes taxing manufactures according to the amount of pollutants they released, which government function is it
regulate negative externalities
promote competition
supervise labor and management relations
protect producers
12
In a
market economy
, how are the basic economic questions of what, how, and for whom to produce answered?
by the nation’s federal and state governments
by the stock market
by consumer sovereignty and firms in the nation’s marketplace
by using a nation’s social customs and traditions
13
What is the primary purpose of job specialization?
increased consumer income
regional self-sufficiency
increased marginal utility
increased efficiency and productivity
14
Land, labor, capital, and entrepreneurship are the
factors of production
results of supply and demand
results of production
basis of employment
15
A market economy has an advantage over a command economy in that the market economy
adjusts to consumer demands over time
controls prices and wages
limits the profits of large corporations
fixes incomes of consumers
16
Which of the following buys goods for personal use and utility?
advocate
client
consumer
producer
17
Heather offers you a Coke, a Dr Pepper, or a 7-Up. You don’t like Coke, so you take the Dr Pepper. What is the OC?
the Dr. Pepper
the Coke
nothing because the drink was free
the 7-Up
18
What does the saying, “There is no such thing as a free lunch” mean?
everything costs something
most things cost nothing
most things cost something
some things cost nothing
19
Which of the following is an example of a service?
purchasing a used Ford Explorer SUV
buying a brand-new Rawlings baseball glove
eating a juicy bacon cheeseburger with extra pickles
receiving a check-up at the doctor’s office
20
If a law is passed requiring that all businesses pay 100% of employees’ healthcare costs, what will probably happen
Businesses may be forced to raise their prices.
Big business will earn greater profits.
Congress will collect more tax revenue
Businesses will hire more workers
21
How do private property rights contribute to a capitalist system?
high quality products and reasonable prices are guaranteed
individuals are free to own the resources used to produce goods
the government regulates monopolies
the government owns most of the factors of production
22
Marginal benefit:
a gain from an increase or loss from a decrease in the consumption of a good or service. It relates to
demand elasticity
supply elasticity
equilibrium price
opportunity cost
23
A free enterprise system is also known as a
communist system.
traditionalist system.
capitalist system.
socialist system.
24
If a company achieves
greater
(goods and services) using the same amount of resources, it has experienced an increase in
positive externalities
underutilization
productivity
utility
25
Which of these is a correct description of one of the ways in which a command economy differs from a market economy?
market economies discourage free enterprise
command economies tend to have a higher per capita GDP
in a command economy, individuals have less economic freedom
in a market economy, the government sets prices
26
Why is the consumer considered "king" (or queen) in a capitalist economy?
consumers contribute to the factor market
consumers own the productive resources
consumers vote for elected government officials
consumers determine what products will be produced with their “dollar vote”
27
Which point(s) on the PPC demonstrate efficiency/ full employment?
Inside the line
On the line
Above the line
Outside the line
28
Which of these is the
BEST
example of a person who is an
entrepreneur
?
Meredith, who donates clothes to charity
Justin, who opens a lemonade stand every summer.
Chris, who works for his uncle on the weekends to earn extra cash
Destini, who bakes a pie for dessert
29
Benefits offered to encourage people to act in certain ways are
motives
utilities
incentives
desires
30
With capitalism, income distribution is determined by market forces
determined by central planners.
that reward under-utilization.
determined by government policy.
that reward productivity.
31
What basic economic problem do both higher-income nations and lower-income nations have in common?
too many unskilled laborers
scarcity of resources
too much government intervention
lack of capital goods
32
Which of the following choices is an example of the productive resource called labor?
a service employee
a forest
a DVD player
a tool making machine
33
An opportunity cost is
the next-best alternative you give up in order to do something else
when goods are recycled into other goods
usually absent in a command economy
only an issue when there is not a scarcity of goods and resources
34
The study of how individuals, institutions, and society make choices under the conditions of scarcity is
economics
entrepreneurship
deregulation
allocation
