Ch 1-2 Intro to Economics

Question 1

According to the invisible hand theory, what is the best motivator?

Accepted Answer

interest in self-gain

Question 2

Which economic system primarily has subsistence farmers who produce only enough for themselves?

Accepted Answer

traditional economy

Question 3

What is the most important task of all economic systems?

Accepted Answer

to make the best choices regarding scarce resources

Question 4

Which is an example of a public good/service?

Accepted Answer

post office

Question 5

When governments supply public goods and services, these usually benefit

Accepted Answer

more than 1 person at a time whether they pay for it or not

Question 6

What is the opportunity cost of choosing to cut class?

Accepted Answer

economics knowledge and a good grade

Question 7

Adam Smith wrote about the invisible hand theory in which book?

Accepted Answer

The Wealth of Nations

Question 8

In a command economy, which of the basic questions are answered by the government?

Accepted Answer

All of the above

Question 9

The U.S. is a mixed economic system but it is mostly

Accepted Answer

market

Question 10

Jim can fix 4 flat tires an hour or type 200 words. The opportunity cost of fixing 1 tire is

Accepted Answer

50 words

Question 11

Which is the best example of a capital resource?

Accepted Answer

A factory building

Question 12

Some argue that privatizing public goods and services in the U.S. is necessary because

Accepted Answer

competition in the private sector will bring down costs

Question 13

If I run a race ($80 entry fee) instead of working ($100 paycheck), my opportunity cost is

Accepted Answer

$180

Question 14

An economic service differs from an economic good in that

Accepted Answer

It is intangible

Question 15

Natural resource, capital resources, human resources, and ____ are the 4 factors of production.

Accepted Answer

entrepreneurship

Question 16

Which describes decision making in a market economy?

Accepted Answer

individuals decide based on profit and consumer demand

Question 17

The idea that the desires and needs of consumers control the output of producers is called

Accepted Answer

Consumer sovereignty

Questions 17