Adam Smith would most likely agree with which statement?

Government should follow a laissez-faire policy.

Why is the United States considered a mixed economy?

The government and the public control the production

Unlimited wants, limited resources

The function of the Federal Trade Commission (FTC) is

ensure truth in advertising and prevent consumer fraud

The Production Possibilities Curve represents...

Maximum attainable amount of products that can be produced.

Consumer sovereignty means that -

through their purchases consumers decide what is produced

The 3 questions that must be answered by the economic system are

What to produce, how to produce and for whom to produce.

How do individuals contribute to the circular flow of economic activity?

Individuals labor in the factories and buy economic products

Which of the following is NOT an example of a negative externality?

A fireworks show that non-payers can view from their balcony

What are the four Factors of Production?

land, labor, capital, entrepreneurship

What is opportunity cost?

What you must give up in order to get something

The function of the Food and Drug Administration (FDA) is to

ensure food products and drugs are safe and effective

Which of the following involves a positive externality?

Planting trees in your backyard., Getting a vaccine.

Comparative advantage occurs when a country can:

Produce a good for a lower opportunity cost

studbud

Economics Honors Unit 1 Test Review

22 termsStudBud Administration306 plays

Pearson Economics Topics 1 and 2.

Flashcards22 cardsFPractice quizPHost liveL

Questions 22

Answers

1
Adam Smith would most likely agree with which statement?
Five-year plans are necessary in order to industrialize.
All nations would benefit from an agricultural economy.
Revolution is the only solution to economic problems
Government should follow a laissez-faire policy.
2
Why is the United States considered a mixed economy?
The government controls all of the production
The government and the public control the production
Only the public controls production
We pass the goods and services on to future generations
3
Any point outside the production possibilities curve...
Is unattainable.
I attainable only if prices fall.
Represents unused resources.
Is attainable only if prices rise.
4
What is scarcity?
Limited resources
Unlimited resources, limited wants
Unlimited wants, limited resources
Unlimited wants
5
The function of the Federal Trade Commission (FTC) is
ensure foods and drugs are safe and effective
regulate international trade
ensure truth in advertising and prevent consumer fraud
set prices for goods and services
6
The factor of production pictured is an example of:
Entrepreneurship
Land
Labour
Capital
7
Profit is the motive in this type of economy
Command
Traditional
Mixed/Market
8
The Production Possibilities Curve represents...
.
The maximum amount of resources available.
Unused resources.
Maximum attainable amount of products that can be produced.
9
Consumer sovereignty means that -
through their purchases consumers decide what is produced
businessmen control demand as well as supply
consumers must buy what the government makes
consumers vote for politicians who make decisions for them
10
The 3 questions that must be answered by the economic system are
how to produce, how much to produce and when to produce.
What to produce, how to produce and for whom to produce.
What to produce, when to produce and how to produce.
what to produce, how to produce and how much government gets
11
How do individuals contribute to the circular flow of economic activity?
Businesses purchase productive resources in product markets.
Individuals labor in the factories and buy economic products
Individuals buy productive resources from factor markets.
Businesses buy goods and services from individuals.
12
Which of the following is NOT an example of a negative externality?
A factory that reduces air quality for surrounding neighbors
Loud noise at a party that disrupts neighbor's sleep
Smoking by your ex-girlfriend, which is why she is your EX
A fireworks show that non-payers can view from their balcony
13
Why is specialization important?
It causes the production possibilities graph to decrease.
It leads to higher efficiency.
It causes self-sufficiency.
It eliminates the need for trade.
14
What are the four Factors of Production?
labor, land, demand, opportunity cost
land, labor, capital, entrepreneurship
land, labor, capital, ownership
demand, labor, land, supply
15
What is opportunity cost?
What great opportunities cost
What you must give up in order to get something
The amount of money an event costs
The amount of wheat you need
16
The factor of production pictured is an example of:
Entrepreneurship
Land
Capital
Labour
17
The function of the Food and Drug Administration (FDA) is to
lobby for laws limiting the amount of sugar in people's diet
conduct research into new drugs for curing disease
ensure food products and drugs are safe and effective
monitor online merchants
18
The provided circular flow diagram would best represent which economic system?
Traditional
Free-market
Modern Mixed
Command/Control
19
Which of the following involves a positive externality?
Planting trees in your backyard.
Loud music coming from your neighbor's house at night.
Spitting your gum out on the sidewalk.
Getting a vaccine.
20
Which point on the Production Possibilities Curve represents efficiency?
C
A
B
21
Comparative advantage occurs when a country can:
Produce less of a good
Produce a good for a lower opportunity cost
Produce more of a good
Produce a good for a higher opportunity cost
22
A command economy is the same as a
planned economy
capitalist market
underground economy
traditional economy

Economics Honors Unit 1 Test Review Flashcards | StudBud