Which of the following actions would increase a country's standard of living?

commitment to make community college free all residents

In a market economy, the strongest incentive for entrepreneurship is the opportunity to

earn a profit by taking risk in goods & services

Why are price floors used by the government?

to prevent prices, including wages, from dropping too low

Which economic changed best explains a reduction in coffee prices?

improved technology for commercial production of coffee

One example of an entrepreneur is

an artist who runs a business painting murals in buildings

Which of the following is a correct statement about monopolies?

they set their price to maximize profit

Which of the following lists of factors of production would an economist categorize as land?

iron ore, natural gas, fertile soil, water

What are the four factors of production required for industrialization?

capital, entrepreneurs, labor, natural resources

Which of the following would be the BEST decision to make in order to maximize profit?

when marginal cost equals marginal benefit

Which statement best describes an immediate result of OPEC reducing supply of oil to the US?

oil prices in the US would rise

How can a government promote economic growth in order to boost its citizens standard of living?

by providing patent and copyright protection for innovation

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Economics Essential Vocabulary

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Questions 26

Answers

1
College graduates are a segment of which factor of production?
goods
land
labor
profit
2
Which of the following actions would increase a country's standard of living?
decrease in spending on infrastructure like roads & bridges
reduction of state parks and public recreation areas
commitment to allow hazardous chemicals used in foods
commitment to make community college free all residents
3
What two systems were linked in the Soviet Union and China?
communism and central planning
the free market and democracy
socialism and democracy
traditional economy and authoritarianism
4
In a market economy, the strongest incentive for entrepreneurship is the opportunity to
determine regulatory & tax policies for all types of firms
support projects, like parks & playgrounds, for public goods
gain personal prestige & fame for an invention
earn a profit by taking risk in goods & services
5
What is the idea that goods and services are limited?
scarcity
shortage
underutilization
opportunity cost
6
Why are price floors used by the government?
to prevent prices, including wages, from dropping too low
to guarantee supply of a product
to lower production cossts
to maintain profitable prices for companies
7
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
it distributes goods equally
8
Which term accurately describes the economic problem of unlimited wants & limited resources?
marginal cost
scarcity
diminishing returns
opportunity cost
9
What is the removal of government controls over a market called?
trade-off
regulation removal
efficiency
deregulation
10
The primary role of government in a market economy is to:
own all factors of production
guarantee profits for all items
protect private property
determine prices for all goods
11
What is a government intervention in a market that affects the production of a good?
regulation
act
law
rule
12
Which economic changed best explains a reduction in coffee prices?
heavy rains destroy the coffee crop in Latin America
improved technology for commercial production of coffee
rapid wage increases for workers processing coffee beans
13
One example of an entrepreneur is
a secretary that specializes in business law
a writer hired by a film studio to adapt a book into a movie
an artist who runs a business painting murals in buildings
an ice skater who is part of a professional ice show
14
In what kind of economy does the government make all the decisions?
centrally planned
free enterprise
mixed
laissez faire
15
Which of the following is a correct statement about monopolies?
they set their price to maximize profit
they will charge any price they want regardless of consumers
monopolies cannot practice discrimination
prices are determined by the government
16
Which of the following lists of factors of production would an economist categorize as land?
farm fields, tractors, pesticides, fertilizers
factories, office buildings, assembly lines, workers
iron ore, natural gas, fertile soil, water
dams, bridges, rock quarries, oil wells
17
Which of the following is an example of nonprice competition?
price wars
product advertising
formation of cartels
collusion
18
What are the four factors of production required for industrialization?
capital, entrepreneurs, labor, natural resources
interest, profit, demand, disposable income
goods, services, wages, technology
specialization, trade, markets, consumerism
19
What market structure has many buyers & sellers, identical products, & free market entry & exit
perfect competition
oligopoly
monopolistic competition
monopoly
20
Which of the following would be the BEST decision to make in order to maximize profit?
when the marginal cost is greater than the marginal benefit
when marginal cost is less than the marginal benefit
when price of product is less than cost of producing it
when marginal cost equals marginal benefit
21
What is a contest for the dollars of consumers?
incentive
competition
profit
capitalism
22
When the quantity demanded for a product is less than the quantity supplied, the market?
has a shortage of products
price is too low
has a surplus of products
is in equilibrium
23
What is the effort people devote to tasks for which they are paid considered?
employment
land
labor
capital
24
What is the license given to an inventor for the creation of a new product called?
copyright
investment
patent
inventor's license
25
Which statement best describes an immediate result of OPEC reducing supply of oil to the US?
oil prices in the US would rise
Oil production in the US would rise
US would halt the sale of fuel to China
US would increase research for alternative fuels
26
How can a government promote economic growth in order to boost its citizens standard of living?
by providing patent and copyright protection for innovation
increasing regulations restricting the use of new technology
promote using obsolete production techniques
increasing taxes on corporate investments in new technology

Economics Essential Vocabulary Flashcards | StudBud