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Economics GSE SSEF 1-5
Economics GSE SSEF 1-5
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Fundamentals of Economics (GSE)
Flashcards
45 cards
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Questions
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Answers
1
What is one benefit provided by Social Security?
compensation for all who lose jobs
medical care for the indigent
cash transfers to workers injured on the job
retirement income for the elderly
2
You bought CDs for $30. (you wont get paid till Monday) What is the opp. cost of these CDs?
knowing you are the first of your friends to have the CDs
$30
difference btw the cost of making CDs and the price you paid
dinner & movie with your friends
3
The resources used to make all goods and services are the
production possibilities
productive resources
production trade-offs
opportunity costs
4
In the cafeteria, there are servers, grill cooks, a baker, & dishwashers:This is a example of:
division of labor
over employment
lack of training
budget cutting
5
Why does even a free market economy need some government intervention?
to provide for things that the marketplace does not address
to make sure that the gov. can meet its need for military
to ensure that the gov. has the freedom to tax as necessary
so the government has some control over factor resources
6
Which sentence BEST describes the effects of regulation and deregulation?
regulation helps producers and deregulation helps consumers
regulation helps consumers and deregulation helps producers
regulation helps both ; deregulation hurts both
both regulation and deregulation have pros and cons for both
7
What effect does new technology usually have on an economy?
it slows an economy down for at least a while
it makes the economy stronger and more efficient
it reduces the available jobs
it reduces the dependence of the economy on business
8
Which of the following is NOT a characteristic of a command economy?
each person is assigned a job
the central government makes all economy decisions
people have a lots of choices when it comes to their jobs
the central government owns all the land and capital
9
An economy that uses its resources to make the greatest number of goods/services is said to be
underutilized
using opportunity cost well
efficient
globally aware
10
Why are all goods and services scarce?
Some goods cost more than others
Some things are needs and others are wants
All resources are scarce
Some people want to have more goods than others
11
You are an entrepreneur. Which economy would you have the MOST opportunity to succeed?
Paul's economy
traditional economy
market economy
command economy
12
Which of the following goals is difficult to achieve in a pure free market system?
freedom
growth
equity
efficiency
13
Any resources that are made by humans and used to create other goods and services are called
capital
labor
services
production
14
Which of the following is NOT a weakness of centrally planned economies?
most workers lack job security
consumers’ needs are generally not met
individual freedoms are sacrificed for societal goals
workers lack incentives to be innovative
15
Which of the following is NOT an example of a public good?
shopping malls
municipal libraries
street lights
highways
16
A market economy has an advantage over a command economy in that a market Economy
controls prices and wages
sets incomes of consumers
adjusts to consumer demands over time
limits profits of large corporations
17
A market economy depends on
private ownership and control of resources
limited competition and profits
an equal distribution of wealth
government ownership and control of resources
18
If a nation encourages entrepreneurship, then which of the following is likely to Occur?
a decline in the number of new business created
the development of many new products and process methods
very little change in overall production of goods & services
fewer applicants to the U.S. patent office
19
What is an important advantage of a free market?
it does not change unless the government directs it
it protects the less fortunate
it is easy to regulate
it offers a wide variety of goods and services
20
A person who believed in the doctrine of laissez faire would disapprove of
consumer sovereignty
the invisible hand of the marketplace
self-interest as the motivating force in the free market
government interference in the economy
21
What does the process of specialization do for an economy?
it eliminates unemployment
it makes it more efficient
it fosters competition
it makes it easier to control
22
What is a factory building an example of?
land
an economic trade-off
technology
capital
23
What is the opportunity cost of a decision?
the best possible way the question could have been decided
the most desirable alternative given up for the decision
a series of alternative decisions that could have been made
the different ways that a different person might have picked
24
How could the Chinese economy be characterized?
centrally planned
free market
mixed, but on the side of free market
mixed, but on the side of centrally planned
25
A company that makes baseball caps is underutilizing/inefficient its resources. This mean?
the company is running more efficient than its competitors
the company is making caps when it could do t-shirts instead
the company is paying its employees less than it should be
the company is producing fewer caps than it could be
26
Which of the following is NOT a key economic question?
How should these goods and services be produced?
What goods and services should be produced?
Who consumes these goods and services?
How should it be ensured that goods & services are paid for?
27
Which of the following does a government provide as part of a safety net for the People?
a strong military defense
general elections every four years
regulation of business
welfare
28
The gov. must decide between military spending and helping farmers. This kind of decision is a
basic economic decision
guns or butter issue
global trade-off
decision at the margin
29
A factory building is considered to be part of which of the following productive Resources?
labor
land
entrepreneurship
capital
30
A centrally planning committee meets to decide what to produce. This is a
market economy
centrally planned economy
traditional economy
weak economy
31
In the American economy, the goal of economic equity is MOST connected with
creating limits on corporate profits
restoring laissez faire capitalism
giving participants a fair chance to succeed
subsidizing businesses that would otherwise fail
32
The physical capital used by woodworkers to make furniture includes
a workshop and money
hard work and time
wood and glue
saws and drills
33
An efficient economy is one that
has very few people who do not work for a living
makes the best use of all its goods and services
makes the least costly use of its resources
uses its resources to make the most goods and services
34
What is the purpose of competition?
to cause producers to try to put each other out of business
To act as a regulating force in the marketplace
to act as a motivating force behind the free market
to cause buyers to have to be careful about spending money
35
Which of the following lists would an economist consider
land
?
dams, bridges, rock quarries, oil wells
farm fields, tractors, pesticides, fertilizers
iron ore, natural gas, fertile soil, water
factories, office buildings, assembly lines, workers
36
Which type of government intervention promotes market competition?
price regulations
public libraries
transfer payments
antitrust laws
37
In what kind of an economy does the government make all the decisions?
free enterprise
socialist
centrally planned
laissez faire
38
Human capital includes
a taxi driver's knowledge of the city streets
the equipment used by a doctor to cure a patient
the machinery used to weave cloth
the salary paid to an account
39
Fred and Anne both decide to see the same movie when they are given free tickets. We know that
neither bear an opp. cost because the tickets were free
both-an opp. cost b/c they could have done other things
both-the same opp. cost since they are doing the same thing
higher cost for the one who had more things to do
40
Paul works as an attorney for a corporation. He is an example of which productive resources?
Labor
Entrepreneurship
Capital
Land
41
Which of the following is an example of capital investments for a manufacturing company?
renting office space for managers
buying new machines for production
buying ad space in magazines
hiring workers for its factories
42
Which of the following makes someone an entrepreneur?
inventing & selling the right to manufacture a computer game
earning a lot of money as a computer programmer
becoming a highly paid dancer
managing a service that hires people to install sprinklers
43
What is one of the most important advantages of a free market?
it encourages growth
it is easy to regulate
it protects the less fortunate
consumers have little choice about the products they consume
44
Which of the following is a "guns or butter decision"?
a woman buying a new sports car or family sedan
a country deciding to use its steel to build jets or cars
a man installing an alarm system or buying new chairs
a school deciding to build a gym or renovate auditorium
45
Linda went to the bank to obtain a loan to start a health food store. She is an example of
capital
land
entrepreneurship
labor
