Which of the following is a disadvantage of a market economy?

It sustains a high degree of uncertainty.

Which of these is a major advantage of a market economy?

There is a high degree of individual freedom.

Which of the following states an advantage of a traditional economy?

Everyone knows exactly what their function is.

Why does even a free market economy need some government intervention

to provide for things that the marketplace does not address

What is the function of an economic system?

to produce and distribute goods and services

The purpose of a production possibilities graph is to?

show alternative ways to use an economy's resources

What effect does new technology usually have on an economy?

It makes the economy stronger and more efficient.

An efficient economy is one that?

makes the best use of all its resources

In a market economy, consumers are powerful because?

they drive decisions about what to produce.

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Intro to Economics

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Questions about principles, types of economic markets, type of economic systems.

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Questions 20

Answers

1
One of the characteristics of a capitalist free enterprise economy is
minimum wage
central planning
voluntary exchange
consumerism
2
Which of the following is a disadvantage of a market economy?
It discourages creativity and new ideas for doing things.
It sustains a high degree of uncertainty.
It restricts personal freedom.
It restricts personal freedom.
3
Which of these is a major advantage of a market economy?
People likely offered goods and services they can't afford
Economic questions are answered by custom and tradition.
There's efficient govt control of production/distribution
There is a high degree of individual freedom.
4
Which of the following states an advantage of a traditional economy?
There's no bureaucracy to interfere with organizing economy.
Property rights are based on tradition.
Everyone knows exactly what their function is.
Creativity and original thought are rewarded.
5
What is the struggle among various producers for the consumer’s business called?
socialism
incentive
competition
regulation
6
Why does even a free market economy need some government intervention
so the government has some control over factor resources
to provide for things that the marketplace does not address
make sure government fulfill needs for military personnel
ensures the government has the freedom to tax as necessary
7
Consumers in a free enterprise economy ultimately determine_______to produce
where
what
why
when
8
What is the function of an economic system?
to make sure all people have equal access to goods
to make sure people are paid for their labor
to give all producers the same access to consumers
to produce and distribute goods and services
9
What is the most effective way for consumers to make their desires known tobusinesses?
by the purchases they make
by hiring lobbyists and joining consumer groups
by protesting and boycotting products
through mail and phone surveys
10
The purpose of a production possibilities graph is to?
enable country to wage war
show alternative ways to use an economy's resources
make it possible to increase an economy's output
keep an economy from having non productive workers
11
What incentive motivates a manufacturer to sell a product?
pleasing the consumer
popularity of the product
making profits on sales
putting others out of business
12
What effect does new technology usually have on an economy?
It reduces the dependence of the economy on business.
It makes the economy stronger and more efficient.
It slows an economy down for at least a while.
it creates equalibrium
13
An efficient economy is one that?
makes the best use of all its resources
Pays all the people a minimum wage
uses its resources to make the most goods and services
has very few people who do not work for a living.
14
Which type of economy is most common in the world today?
market
mixed
traditional
command
15
Economics is defined as the study of how societies deal with?
the paradox of wealth
the division of labor
the problem of scarcity
factors of production
16
Societies are faced with which three basic questions about production of goods?
what, how, and for whom
when, where, and for whom
what, how , why
what, where, when
17
In a market economy, consumers are powerful because?
they help decide a business’s opportunity costs.
they drive decisions about what to produce.
they have more rights than corporations.
their interests force producers to behave ethically.
18
The resource used to make all goods and services are the?
production possibilities
factors of production
production trade-offs
opportunity costs
19
struggle of sellers to attract consumers by offering best products at lowest prices is known as
profit motive
competition
voluntary exchange
property rights
20
Sally has to do homework after school though she'd much rather be hanging out with her friends
Opportunity cost
Utility
Prodcution
PPC

Intro to Economics Flashcards | StudBud