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Test 1 review
Test 1 review
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test 1 review econ.
Flashcards
37 cards
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Questions
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Answers
1
a bridge is an example of a:
private acheivement
public law of transportation
public good
private good
2
a country is changing from centrally planned economy to a free market economy. One difficulty:
only poor quality goods will become available to consumers
workers will lose job security and guaranteed incomes
farmers will have to grow the crops that gov't tells them to
entrepreneurs have fewer opportunities to start new firm
3
what information is needed to make a decision at the margin?
more than three alternatives
factors of production
cost to produce each unit
oppotunity costs
4
when did the nation's welfare system begin?
during World War I
during the War on Poverty
during the Great Depression
during the Civil War
5
which of the following does the gov't provide as a safety net?
a strong military defense
general elections every 4 years
regulation of commerce
unemployment compensation
6
the United States economy is a mixed economy
based on free market, but allowing some gov't intervention
based on free market, allowing no gov't intervention
based on traditional, allowing some gov't intervention
based on centrally planned, but limiting gov't involvement
7
What would some say is the 4th factor of production?
labor
capital
entrepreneurs
land
8
who finances public goods?
private sector
public sector
Wayne Enterprises
Matt Ryan
9
the process used to produce a good or service
patent
referendum
technology
business cycle
10
which of the following are all considered to be land?
corn fields, tractors, computers, rakes
natural gas, oil, trees, water
dams, bridges, gravel pits, oil wells
factories, building, workers, bees
11
what is the extra cost of adding one unit?
market value
marginal benefit
efficiency
marginal cost
12
An arrangement that allows buyers and sellers to exchange things
market
contract
this one is NOT THE ANSWER
hand shake
13
human capital includes:
the slary paid to an accountant
the machinery run by a seamstress to weave cloth
the equipment used by a doctor to cure a patient
the knowledge a taxi driver has of the city streets
14
New machines allow a company to make cars much faster. This is an example of growth cause by:
labor
natural resources
PPC
technology
15
main difference between a free market economy and mixed economy
the addition of traditional elements in a mixed economy
the greater amount of gov't involvement in a mixed economy
the greater amount of gov't involvement in a free market
the addition of traditional elements in a free market system
16
the study of the behavior and decision making of entire economies
this one is not the answer
microenomics
macroeconomics
gross domestic product
17
visual way of examining opportunity costs
decision making grid
supply curve
demand curve
marginal benefit
18
What did Congress pass that requires a business to inform people about the products they sell?
public disclosure laws
legal aide
Miranda laws
disturbing the peace laws
19
the total value of all final goods and services produced in a particular economy in a year
gross product
business cycle
gross domestic product
referendum
20
A comp. is hired to build and run a state road system, only maintains heavily areas, example:
public good
negative externality
market failure
positive externality
21
the use of resources to maximize the output of goods and services
surplus
efficiency
scarcity
shortage
22
why are public goods examples of market failures
they cannot distribute certain resources efficiently
show that the private sector is more efficient that public
they show the free enterprise system doesn't work
they show that competition in the free market is dangerous
23
You chose between 2 summer jobs, the one that you don't chose is your _____ decision.
decision at the margin
opportunity at the margin
trade-off
opportunity cost
24
to improve standard of living, a nation must:
reach economic equity
allow the central government to make economic decisions
remain stable
grow through innovation
25
the curve usually seen in a production possiblities frontier can be explained by:
supply and demand
cost law
PPC
law of increasing costs
26
military must decide to spend money on the military or help farmers. Economist call this choice
underutilization of resources
a decision at the margin
guns or butter issue
the law of increasing costs
27
what is a positive aspect of a centrally planned economy?
quick adjustment to changing conditions
incentives for workers to be innovative
low unemployment due to guaranteed jobs
high levels of consumer satisfaction
28
.C on represents Goods and Services
True
False
29
.A on the PPC represents an inefficient company
False
True
30
when a country's maximum possible output is plotted on a graph
production possibility
production possibility frontier
PCC
production curve
31
when an economy uses fewer production resources than it would at maximum production
not efficient
surplus
underutilization
shortage
32
the process by which older products and processes become out of date
referendum
obselescence
technology
business cycle
33
what's the gov'ts role in controlling externalities in the American economy?
tries to encourage negative and limit positive
encourage all externalities to increase competition
tries to encourage positive and limit negative
limit all externalites to stop market failure
34
which is an example of a company trying to increase human capital
leasing cars for emplyees
building a new cafeteria
hiring more part-time workers
paying for emplyees' education
35
Point C represents an efficient economy
True
False
36
how do education programs make the economy more productive?
reducing payments to unemployed people
reducing injuries on the job
adding to human capital and labor productivity
providing more jobs to educators
37
why are goods and services scarce?
some goods cost more than others
people want more than they can have
greedy people want to many goods
resources used to produce them are limited
