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Economics Unit 1 review Flashcards | StudBud
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Economics Unit 1 review
Economics Unit 1 review
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This is a Quiz to test our knowledge of the foundational ideas of #economics.
Flashcards
53 cards
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Practice quiz
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Questions
53
Answers
1
The correct label for #9 on the following diagram is:
taxes
government spending
resources
goods & services
2
What does Point H represent?
The maximum amount we can produce right now.
An impossible level of production.
Inefficient production.
3
Any factor that encourages or motivates a person to do something or
not
do something.
Consequence
Incentive
Margin
Benefit
4
Profit motive is defined as:
a business's desire to spend money
how a business creates income
the desire to work
an incentive to make money
5
What does the Production Possibilities Curve tell us?
It shows the possible outcomes when two goods are produced.
It maps trade between two nations.
It tells us when we are in recession.
It predicts when unemployment is rising.
6
The resources used to make goods and services are called the...
natural resources
factors of production
production tradeoffs
the production frontier
7
The correct label for #4 on the following diagram is:
resources
spending
goods & services
costs
8
Workers need to make products, earn wages, and contribute wages back into the economy by buying goods & services.
free enterprise goal: Growth
free enterprise goal: Stability (employment)
free enterprise goal: Stability (prices)
9
Economic system that relies on habit, custom, or ritual to decide the key economic questions.
command economy
mixed economy
market economy
traditional economy
10
The idea that a country has to make a trade-off between using resources for military goods or consumer/social goods.
want or need
guns or butter
public or private
11
The key economic questions are answered by market forces with some government involvement.
traditional economy
mixed economy
market economy
command economy
12
characteristic of free enterprise: people/businesses are driven to improve their own financial situation
Profit motive
Open opportunity
Private property
Free contract
13
deciding whether to add or subtract one additional unit of some resource
cost-benefit analysis
opportunity cost
guns or butter
thinking at the margin
14
The correct label for #6 on the following diagram is:
taxes
welfare
public goods
subsidies
15
What is opportunity cost?
spending money on what you want
the cost of buying one more of something
everything you have to give up to do what you want
the value of the next best alternative that is given up
16
Command economy where the government owns and controls all factors and means of production.
socialism
communism
17
Human capital is defined as:
how much money someone earns
the number of people in the workforce
the knowledge and skills that a worker possesses
hiring new people
18
The correct label for #1 on the following diagram is:
households
product market
businesses
resource market
19
Which choice is the correct example of opportunity cost?
You make a toy from leftover popsicle sticks.
You buy a new jacket with birthday money.
Mr. Smith spends his money on a trip instead of buying new clothes.
Teachers take on the extra duty of driving buses.
20
The correct label for #8 on the following diagram is:
goods & services
government spending
taxes
resources
21
Which of these is a characteristic of a mixed economy?
Farmers engage in a barter economy.
Government sets a minimum wage for private business.
All factories produce for the government's needs.
Markets manage themselves with no government interference.
22
People can choose their own work and how to use their money. Businesses can choose what/where/how/if to produce.
free enterprise goal: Equity/fairness
free enterprise goal: Efficiency
free enterprise goal: Security
free enterprise goal: Freedom
23
Which of the following is NOT a benefit of a free enterprise system?
allows economic mobility
provides incentive for smart use of property and resources
encourages competition, innovation, and market variety
government control provides stability
24
The study of economics is concerned with:
customs and traditions
making sure businesses succeed
how people make choices with limited resources
efficiently allocating society's products
25
Which of these is an example of physical capital?
oil
Ms. D
a computer
trade skills
26
characteristic of free enterprise: people have the right to control their possessions and use them like they want
Profit motive
Open opportunity
Free contract
Private property
27
It's essential to provide goods & services to increase standard of living for citizens/consumers.
free enterprise goal: Stability (employment)
free enterprise goal: Stability (prices)
free enterprise goal: Growth
28
What is the opportunity cost if we move from Point C to Point B?
300,000 pizzas
100,000 pizzas
7,000 robots
both pizzas and robots
29
Decisions on key economic questions are based on voluntary exchanges and participation.
mixed economy
traditional economy
command economy
market economy
30
Consumer sovereignty means that ...
producers advertise goods and services
producers create demand for products
consumers choose what will be produced
consumers determine how resources are allocated
31
The fundamental economic problem faced by all societies is ...
inequality
scarcity
poverty
unemployment
32
characteristic of free enterprise: anyone can compete in the marketplace
Open opportunity
Profit motive
Private property
Free contract
33
The correct label for #2 on the following diagram is:
households
resource market
businesses
product market
34
The correct label for #3 on the following diagram is:
goods & services
resources
spending
costs
35
The government makes all decisions on the key economic questions.
mixed economy
command economy
traditional economy
market economy
36
Mr. Goodwrench, an auto mechanic, requires physical capital resources. These are:
customers, tools and land
a garage, lenders and customers
money, a garage and employees
a garage, tools and a telephone
37
Which of these is a example of labor?
architect designing an apartment building
person starting up a new business
assembly line worker getting trained on new equipment
38
The term "land" in factors of production means ...
any natural resources
dirt
real estate
unfinished goods
39
Which is the best definition of scarcity?
not having enough money to buy stuff
a shortage of goods
the allocation of goods and services
unlimited wants and needs vs limited resources
40
Command economy where the government controls public-good industries and other industries are privately owned.
socialism
communism
41
For a factor of production to be scarce, it must be...
rare and expensive
unevenly allocated
limited and desirable
unlimited and cheap
42
Focus on using resources to maximize output of goods & services.
free enterprise goal: Equity/fairness
free enterprise goal: Freedom
free enterprise goal: Security
free enterprise goal: Efficiency
43
The correct label for #7 on the following diagram is:
public goods
welfare
taxes
subsidies
44
Create a social “safety net” to protect citizens from economic downturns and support them when they can’t produce/work.
free enterprise goal: Equity/fairness
free enterprise goal: Efficiency
free enterprise goal: Security
free enterprise goal: Freedom
45
the study of how consumers, workers and businesses interact to create outcomes in specific markets; “everyday” economics
microeconomics
macroeconomics
46
In a command economy, the key driver of the economy is...
businesses
the government
entrepreneurs
consumers
47
Which of these is NOT one of the fundamental questions of economics?
Who will produce it?
Who will we produce it for?
What will be produced?
How will we produce it?
48
the study of production, employment, prices and policy on a national scale; “big picture” economics
macroeconomics
microeconomics
49
The correct label for #5 on the following diagram is:
costs
goods & services
spending
resources
50
Government wants stable and predictable markets, but they should also be responsive to consumer needs and wants.
free enterprise goal: Growth
free enterprise goal: Stability (employment)
free enterprise goal: Stability (prices)
51
Why would the richest person in the world experience scarcity?
Because productive resources are limited.
Because prices are too high.
Rich people do not experience scarcity.
Because workers wages keep going up.
52
characteristic of free enterprise: people get to decide what agreements they want to enter into
Free contract
Private property
Profit motive
Open opportunity
53
Government passes laws and regulations to prevent discrimination and protect consumers.
free enterprise goal: Security
free enterprise goal: Efficiency
free enterprise goal: Freedom
free enterprise goal: Equity/fairness
