Unit I Test Review (reg Econ)

Question 1

An economy that doesn't embrace innovation, and instead maintains the status quo most resembles

Accepted Answer

A traditional economy

Question 2

What is the fundamental issue in economics?

Accepted Answer

Scarcity

Question 3

Under capitalism, what creates the incentive to work, save, and invest?

Accepted Answer

Private Property Ownership

Question 4

Using the image, which point shows inefficiency?

Accepted Answer

E

Question 5

What type of economic system produces the largest variety of goods?

Accepted Answer

market

Question 6

Our U.S. free enterprise system has all of the following EXCEPT for

Accepted Answer

An absence of laws

Question 7

Our ___ are limited, yet our wants and needs are ___.

Accepted Answer

resources ; unlimited

Question 8

What does inflation cause people to do?

Accepted Answer

Work more for the same basic necessities

Question 9

'There Is No Such Thing As A Free Lunch' suggests that

Accepted Answer

Nothing in life is free

Question 10

What type of economic system does North Korea have?

Accepted Answer

Command

Question 11

A national policy of avoiding international alliances and economic interactions is called

Accepted Answer

isolationism

Question 12

What type of economic system is based off of ritual, habit, and custom?

Accepted Answer

Traditional

Question 13

What was the restructuring of the Soviet economy in Russia called?

Accepted Answer

Perestroika

Question 14

The more output a business makes, the more ___ they are.

Accepted Answer

productive

Question 15

A t-shirt is an example of a

Accepted Answer

nondurable good

Question 16

In determining whether or not an action is worth the cost, the best analysis would be a(n)

Accepted Answer

cost-benefit analysis

Question 17

Why are consumers so powerful in a market economy?

Accepted Answer

They choose what businesses ultimately produce

Question 18

Someone who values complete economic freedom would be happiest in what economic system?

Accepted Answer

Market

Question 19

What do economists call income that does not increase over time?

Accepted Answer

Fixed income

Question 20

An independently owned group of Japanese firms united to regulate competition is called

Accepted Answer

Keiretsu

Question 21

Using the image, which point on the line is the best?

Accepted Answer

It depends what the country needs

Question 22

A country where the government decides what to produce and how much to produce most resembles a

Accepted Answer

command economy

Question 23

If you like reading, TV & music in that order and choose to read what is your opportunity cost?

Accepted Answer

TV

Question 24

What is the efficient use of resources called?

Accepted Answer

Productivity

Question 25

"The customer is always right" most relates to which of the following concepts?

Accepted Answer

Consumer Sovereignty

Question 26

Which of the following is NOT part of voluntary exchange?

Accepted Answer

Restricted price market

Question 27

What is a disadvantage of a market economy?

Accepted Answer

High levels of uncertainty about what to make

Question 28

Using the image, how does a country get to Point F?

Accepted Answer

More resources and/or technology

Question 29

What type of economic system does China have today?

Accepted Answer

Market

Question 30

Someone who would rather the government make economic choices for them would prefer ___?

Accepted Answer

A command economy

Unit I Test Review (reg Econ)

Questions 30

Unit I Test Review (reg Econ)

Questions 30