The 'invisible hand' refers to:

Price will be set according to demand and supply

A feature of the market economy is:

the profit motive dominates producers' decision making

The PPC shows the combination of two products if:

resources and technology are used to their full potential

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Eco Week 2

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Questions 20

Answers

1
The Traditional System is:
all of the above
usually land intensive
surplus produce is used for bartering
based on custom
2
An impossible point of production on a PPC is shown:
on the line
above the line
all of the above
below the line
3
Wants are:
desired goods and services that will improve the standard of living
all of the above
desired goods and services
needed for survival
4
A point below the PPC shows:
resources are being wasted
what is given up to produce all of one product
all of the above
an unattainable combination
5
Income tax is increased for all wage earners. This decision involves which economic question?
How to produce?
What to produce?
Where to produce?
For whom to produce?
6
Farmer Jonathon decides to harvest his wheat crop and plant corn. This decision involves which economic question
For whom to produce?
All of the above
What to produce?
How to produce?
7
Opportunity cost is:
the dollar value of the chosen option
the dollar cost of the opportunity
what is given up in order to gain something else
thet dollar value of what is given up
8
Consumption is:
spending money on goods and services
using up goods and services
selling goods and services
making goods and services
9
Collective wants are:
recurring wants
a collection of wants
complementary wants
community wants
10
Which are recurring wants?
food
all of the above
petrol
visit to the gym
11
Complementary wants include:
car and petrol
chips and bread
newspaper and milkshake
all of the above
12
Our wants are unlimited but our resources are limited, This concept is known as:
an economic system
collective wants
the economic problem
enterprise
13
Which is a capital resource?
Hammer
Teacher
Bill Gates
a Paddock
14
The 'invisible hand' refers to:
Price will be set according to demand and supply
The price setter
Consumer sovereignty
15
A feature of the market economy is:
the profit motive dominates producers' decision making
land intensive methods are used
most resources are owned by the central planning authority
output is distributed to those most in need
16
Resources can also be called:
factors of production
basics used in production
production items
17
Which of the following is NOT one of the economic questions?
where to produce?
how to produce?
for whom to produce
what to produce?
18
A simplified view of the world is known as:
economics
economic model
scarcity
enterprise
19
The basis of the economic problem is:
enterprise
resources
scarcity
unlimited
20
The PPC shows the combination of two products if:
resources and technology are used to their full potential
resources are unlimited
technology is continuously changing
resources and technology increase yearly

Eco Week 2 Flashcards | StudBud