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Economics Unit 1 Test Flashcards | StudBud
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Economics Unit 1 Test
Economics Unit 1 Test
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Review for the Economics Unit 1 Test.
Flashcards
32 cards
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Questions
32
Answers
1
Which
is
a characteristic of a
centrally planned, Communist system
(like in Cuba)?
individuals answer all 3 key economic questions
investments are determined by private decision
private or corporate ownership of capital goods
the central government answers all 3 key economic questions
2
All of the following are basic questions that Economics attempts to answer
except
How is it produced?
What is produced?
For whom should we produce?
Who produces goods for profit?
3
Which of the following is an example of
entrepreneurship
?
Buildings, machines, money, tools.
Land, water, trees, oil, coal.
Risk-takers who combine land, labor & capital in a business.
The work that people do.
4
The four
Factors of Production
are
supply, demand, scarcity, and resources.
land, labor, capital, and entrepreneurship.
cost, benefit, profit, and marginal analysis.
sole proprietorships, partnerships, corporations, & other.
5
Which of the following is
most likely
to face the greatest amount of government regulation?
a corporation
a limited partnership
a general partnership
a sole proprietorship
6
Which of the following is an example of
capital
?
Risk-takers who combine land, labor & capital in a business.
Land, water, trees, oil, coal.
Buildings, machines, money, tools.
The work that people do.
7
A
sole proprietorship
is a(n)
business owned by a single person who receives the profits.
large company and legal entity owned by stock shareholders.
business owned by two or more people who share profits.
institution that does not operate to make a profit.
8
All of the following are advantages of a
sole proprietorship
except
the owner making his own hours.
the owner making all of the business decisions.
the owner getting to keep all of the profits.
the owner being taxed for dividends from shares of stock.
9
Which economic system offers the best opportunities to go into business for yourself?
free enterprise
centrally planned
traditional
command
10
Which of the following is an example of
land
?
Risk-takers who combine land, labor & capital in a business.
The work that people do.
Buildings, machines, money, tools.
Land, water, trees, oil, coal.
11
All of the following are reasons that
entrepreneurship
is attractive to many people
except
You have to pay double taxes due to the Entrepreneur Act.
You get to be your own boss, and make your own schedule.
You get to be creative, using your skills to help business.
You have the opportunity to make money, and earn a profit.
12
Government planning
has no part in making decisions in which of the following economic systems?
pure market
centrally planned
command
mixed
13
An
action
or
activity
that one person performs for another would be an example of a
service.
good.
need.
want.
14
Opportunity cost
is the value of the next
option right after the one you did not choose.
time you get to pick your first choice.
marginal analysis conducted for choice.
best alternative (your second choice).
15
A
physical object
such as clothing or shoes would be an example of a
need.
want.
service.
good.
16
All of the following are
risks
entrepreneurs take when going into business
except
people may not want or buy your product or service.
potentially losing money or investments.
being creative and using your skills to help a business.
not knowing how to run all aspects of a company.
17
The concept of
scarcity
implies
unlimited quantities of resources to meet unlimited wants.
limited quantities of resources to meet limited wants.
limited quantities of resources to meet unlimited wants.
unlimited quantities of resources to meet limited wants.
18
Which type of business organization has the greatest amount of
individual
liability?
franchise
corporation
sole proprietorship
limited partnership
19
Which of the following is an example of
labor
?
The work that people do.
Risk-takers who combine land, labor & capital in a business.
Land, water, trees, oil, coal.
Buildings, machines, money, tools.
20
An item that we desire but that is
not
essential
to survival is a
good.
service.
want.
need.
21
Which of the following describes the
best advantage
of a corporation?
a guarantee of greater profits
personal service to its customers via word of mouth
increase in individual liability and production costs
greater access to productive resources and capital
22
All of the following are
characteristics
of a successful entrepreneur
except
desire to work hard and put in long hours.
profound lack of creativity.
strong knowledge of business.
willing to take risks.
23
Something like air, food, or shelter that
is necessary
for survival is a
need.
want.
good.
service.
24
Scarcity
always exists
because our needs and wants are
always greater than our resource supply.
always less than our resource supply.
always equal to our resource supply.
entirely unrelated to our resource supply.
25
A
corporation
is a(n)
large company and legal entity owned by stock shareholders.
institution that does not operate to make a profit.
business owned by two or more people who share profits.
business owned by a single person who receives the profits.
26
Which of the following is an example of a company's
physical capital
?
Time expended and machinery used by the company's customers.
Training required for the workers to operate machinery.
Knowledge and skills gained by workers through education.
Machinery used by workers to provide a good or service.
27
Which of the following business types would it be
more likely
for you to own a share of?
a general partnership
a corporation
a limited partnership
a sole proprietorship
28
Which of the following statements is true about
scarcity
?
Some of the goods and services we produce are scarce.
Only goods and services used to satisfy wants are scarce.
All of the goods and services we produce are scarce.
Only goods and services used to satisfy needs are scarce.
29
A nation's
Production Possibilities Curve
shows
the best use of resources to ensure efficient growth.
the proper way to measure productivity and cost.
when to produce certain goods.
alternative ways to use an economy's productive resources.
30
A
partnership
is a(n)
large company and legal entity owned by stock shareholders.
institution that does not operate to make a profit.
business owned by two or more people who share profits.
business owned by a single person who receives the profits.
31
Which
is not
a characteristic of a
free enterprise system
(like we have here in the U.S.)?
private or corporate ownership of capital goods
individuals answer all 3 key economic questions
the central government answers all 3 key economic questions
investments are determined by private decision
32
Economic efficiency
is using
limited resources to maximize cost of goods and services.
scarce resources to maximize production of goods & services.
unlimited resources to fulfill people's wants and needs.
non-scarce resources to minimize the profit of purchases.
