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