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Economics, Unit 1 Test
Economics, Unit 1 Test
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Economics Test, Youngblood, Coughlin, Hanchett: Chapters 1, 2, and 3.
Flashcards
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Questions
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Answers
1
Which economic system is described as being stable and non-changing?
Market
Command
Mixed
Traditional
2
This is the economic goal of trying to keep prices consistent and stable
Profit Motive
Private Property Rights
Price Stability
Production Possibilities
3
By dividing up the labor you become more
terrific
economical
stable
specialized
4
The value of the next best thing given up is:
the opportunity cost
a rational decision
an irrational decision
the trade off
5
Which economic system is producer and consumer driven with some government interaction?
Mixed
Traditional
Command
Market
6
The act of
choosing
one thing of value over another thing of value is:
a rational decision
opportunity cost
trade off
production possibilities frontier
7
It's the drive people use to start businesses.
Profit Motive
Competition
Private Property Rights
Voluntary Exchange
8
Which economic goal is BEST associated with a command economy?
Competition
Economic Freedom
Economic Equity
Profit Motive
9
On a production possibilities curve, what is needed to move beyond 'full potential'?
division of labor
an absolute advantage
scarcity
idle resources
10
Two friends started a business together. How is each business owner's liability determined?
The one who invested more money has more liability
The one who invests more money has less liability
Both have equal liability
The shareholders are the only liable people involved
11
Which of the following is NOT an economic goal?
Price Stability
Economic Efficiency
Profit Motive
Economic Growth
12
What is 'economics'?
it is the production possibilities frontier
the study of how scarce resources are allocated
man made goods that allow another good or service to occur
the four factors of production
13
It is the government that decides what to produce, how to produce, and for whom to produce,
in a market economic system
in a command economic system
in a mixed economic system
in a traditional economic system
14
A service is:
a barber
a banker
an oil change
a makeup artist
15
The difference between profit and non profit businesses is:
Non profit businesses have no profit
Non profit businesses have no expenses
For profit businesses have no profit
Non profit businesses have no revenue
16
a waitress, a mechanic, and a barber are all examples of:
Laborers
Entrepreneurs
Non-profit employees
Shareholders
17
The business that requires a charter is a
General Partnership
A Limited Partnership
Corporation
A market economy
18
An example of a division of labor is:
the job of line cooks in a restaurant
a clerk and her customers
a plumber
a teacher and his students
19
The factors of production are:
Consumer goods, irrational choice, Landowners, Labors
Division of labor and specialization
Capital, entrepreneurs, land, labor
Scarcity, Full Potential, Idle Resources, division of labor
20
Scissors, hair dye, and a beauty salon are all examples of:
Capital Goods
Human Capital
Consumer Goods
Land Goods
21
Non profit organizations are organizations that
Do not have a profit
Have a CEO
Do not collect revenue
Are "do gooders"
22
A supervisor, a construction worker, and an inspector are all examples of:
Entrepreneurs
Services
non profit employees
Laborers
23
The economic system in which the buyers and sellers decide on goods (no government involvement)
Market
Mixed
Traditional
Command
24
Which would NOT result in idle resources on a production possibilities frontier?
A shortage of capital goods
Workers going on strike
Machinery malfunctioning
adding more resources
25
Business types with limited life are:
Entrepreneurs and Laborers
Limited Partnerships and Corporations
Sole proprietorships and Partnerships
Corporations and General Partnerships
26
The system in which the government controls all decisions about buying and selling goods
Mixed
Command
Market
Traditional
27
On a production possibilities frontier, full potential is reached when:
resources are being used efficiently
The entrepreneur makes the call
Workers go on strike
there are idle resources
28
At a bakery, the building, the dough, and the mixer machine are all examples of:
Land
Labor
Capital
Entrepreneurship
29
Which economic goal is associated with having jobs for everyone who wants one?
Full Employment
Economic Security
Economic Efficiency
Profit Motive
30
An advantage of the traditional economic system is:
The government helps out
Specialization
There is high profit
There are new innovations
31
The business type that is the easiest to start up and has only one owner is:
A limited partnership
A small business
A sole proprietorship
An entrepreneurship
32
When buyers and sellers freely and willingly engage in market transactions
Voluntary Exchange
Economic Freedom
Economic Growth
Profit Motive
33
An entrepreneur is:
A business starter, risk taker
A laborer on the assembly line
A service provider
The stockholder of a corporation
34
Which three basic questions does a clothing company ask when dealing with scarcity?
What to produce, why to produce, how to produce?
Who to employee, where to work, and what resources to use?
Where to produce, who should produce, why to produce?
What to produce, how to produce, for whom to produce?
35
In which economic system is there NO ECONOMIC FREEDOM?
Command
Market
Mixed
Traditional
36
The business type that has an unlimited liability is:
The corporation
The mixed economy
The sole proprietorship
The market business type
37
Jane wants to know what her profit is for the month. How will she determine this?
Expenses - Profit
Revenue - Expenses
Taxes - Expenses
Revenue - Profit
38
What would be the opportunity cost of purchasing a pair of shoes for $50?
Anything else for that price
None of the above
The $50
The shoes
39
Water, oil, dirt, magnesium ore, iron ore, and coal are all examples of:
Consumer Goods
Capital Goods
Labor
Land
40
Which economic goal has the principle of treating people fairly or equally?
Economic Security
Economic Growth
Economic Fairness
Economic Equity
41
Adding more resources results in:
economic growth
more capital goods
revenue that outweighs expenses
monotony
42
The difference between a general partnership and a limited partnership is:
The liability
The start-up
The taxation
The life
43
Both for profit and not for profit business deal with the problem of:
taxes
scarcity
employee waste
irrational decisions
44
The consumer determines the three basic questions with no government involvement
in a traditional economic system
in a command economic system
in a market economic system
in a mixed economic system
45
The economic system that is based on customs and that focuses on getting basic needs met.
Mixed
Traditional
Market
Command
