Unit 1 Econ Review

Question 1

An economy that discourages new ideas and typically use the barter system when exchanging goods

Accepted Answer

traditional

Question 2

A worker in the auto industry is classified as which factor of production?

Accepted Answer

labor

Question 3

Timber, water, oil, and other natural resources are included as what factor of production?

Accepted Answer

Land

Question 4

A reward that may encourage someone to make a certain decision

Accepted Answer

incentive

Question 5

The United States economy most closely resembles which type of economic system?

Accepted Answer

Mixed

Question 6

The opportunity cost of an item is

Accepted Answer

what you give up to get that item

Question 7

What point on the graph is unattainable?

Accepted Answer

E

Question 8

Scarcity happens when

Accepted Answer

there is a limited supply of a good

Question 9

The government makes all economic and political decisions in this type of economy

Accepted Answer

command

Question 10

This type of economy discourages new ideas and usually have a lower standard of living.

Accepted Answer

traditional

Question 11

The study of economics that refers to the economy as a whole.

Accepted Answer

macroeconomics

Question 12

Which is not a result of competition in an economy?

Accepted Answer

lower wages

Question 13

What point on the curve represents a recession?

Accepted Answer

D

Question 14

Which of the following is not a feature of free enterprise?

Accepted Answer

state run business

Question 15

Resources are owned and controlled by only private individuals.

Accepted Answer

market

Question 16

The government and individuals both have economic power in this type of economy

Accepted Answer

mixed

Question 17

A PPF (or PPC) shows

Accepted Answer

all combinations of TWO goods an economy can produce.

Questions 17