Economics Review

Question 1

A production possibilities curve illustrates

Accepted Answer

Combinations of two goods or services that can be produced

Question 2

This is determined by a product’s scarcity and utility

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price

Question 3

In pure free market economies, the basic economic decisions are made by

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individuals

Question 4

Which of the following economic goals is concerned with making the best use of scarce resources?

Accepted Answer

efficiency

Question 5

Economists classify a country’s economy based on their

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degree of government control

Question 6

The study of choices that people make to satisfy their wants and needs is

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economics

Question 7

The basic problem of economics is

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scarcity

Question 8

The things that people use to make or obtain what they need and want are called

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resources

Question 9

The incentive of government in the economic system is to

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maximize general social welfare

Question 10

A products usefulness is called its

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utility

Question 11

Macroeconomics is the study of

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entire economies

Question 12

The economic rivalry that develops among businesses selling the same or similar products is called

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competition

Question 13

The mixed economies that are closest to the pure free market model are said to practice

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capitalism

Question 14

The use of technical knowledge and methods to create new products or make existing products more efficiently is called

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technology

Question 15

Producers and consumers agreeing to provide one type of item in return for another is called

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exchange

Question 16

The naturally occurring phenomena that corrects the free market through self-interest, competition, and incentives

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invisible hand

Question 17

What term is used for the value of the next best alternative given up in order to obtain an item or pursue an activity?

Accepted Answer

opportunity cost

Question 18

Because the economic system of the United States is based on the freedom to make choices, it is often referred to as a

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Free-enterprise system

Question 19

The use of the smallest amount of resources to produce the greatest amount of output is

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efficiency

Question 20

Goods that are owned by individuals and businesses are

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private property

Question 21

During the Old Kingdom of Egypt, when the pharaoh owned the land, collected taxes, and controlled all trade, they had a

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Command economy

Question 22

The economic system in which the government’s role is the most limited is

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capitalism

Question 23

Market failure when the market is wasting resources and producing goods at a higher than necessary cost

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productive inefficiency

Question 24

Participants move forward with a decision when

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marginal benefit\gemarginal cost

Question 25

In the United States, individuals engage in competition and make decisions based on

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Self-Interest

Question 26

Both firms and government seek the goal of

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Both a and b.

Question 27

The organizational abilities and risk-taking involved in starting a new business or introducing a new product is called

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entrepreneurship

Question 28

Finished products intended for personal use are

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consumer goods

Question 29

Food, clothing, and shelter are examples of

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needs

Question 30

The feature that distinguishes the US economy from the pure free market model is

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limited government involvement

Question 31

The level of output that results from a given level of input is called

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productivity

Question 32

An economic system in which people are free to buy, sell, and produce whatever they want is a(n)

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free market economy

Question 33

The value of the next best alternative given up in order to obtain an item or pursue and activity is

Accepted Answer

opportunity cost

Economics Review

Questions 33

Economics Review

Questions 33