stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Economics Chapters 1-3 Review Flashcards | StudBud
Explore
/
Economics Chapters 1-3 Review
Economics Chapters 1-3 Review
50 terms
·
StudBud Administration
·
619 plays
Imported from external platform
Flashcards
50 cards
F
Practice quiz
P
Host live
L
Questions
50
Answers
1
Which of the following explains why products made under a command economy are more likely to be low quality?
The workers are not given quality-control guidelines.
The workers are left to manage production facilities on their own.
The workers have little incentive to make them well.
The workers are forced by tradition to use old-fashioned methods.
2
Which of the following choices best describes what this production possibilities frontier is depicting?
alternative possibilities
economic growth
opportunity costs
cost of idle resources
3
Which of the following are examples of needs?
clothing and pizza
video games and food
clothing and Nike shoes
food and clothing
4
Identify which of the following would be an example of capital.
oven
digging a ditch
cotton field
apple tree
5
A state government building a highway is an example of government fulfilling its duty as "Protector"?
False
True
6
What is the incentive to improve material well-being by seeking to gain profit from economic activities?
legal equality
open opportunity
profit motive
marginal benefit
7
What is an American incentive that gives people the right to work, save, invest, and get ahead?
economic interdependence
private property rights
competition
voluntary exchange
8
Which statement describes why the people in a nation w/ a command economy might resist a shift to a free market economy?
Factories are reluctant to place their capital under work authority.
People who hold political power are threatened by fundamental changes.
Workers are reluctant to accept complete gov. control of their economy.
Workers are reluctant to give up their participation in a classless society
9
Consumers waiting in a long line for a new product is an example of
consumer responsibilities.
consumerism.
consumer rights.
scarcity.
10
Which of the following factors of production involve taking risks and combining resources to produce a good or service.
entrepreneurship
capital
land
labor
11
Some necessities have little value while some necessities have a much higher value is known as
opportunity cost
economic interdependence
trade-offs
paradox of value
12
The minimum wage is an example of a federal law that supports
economic efficiency.
economic equity.
economic growth.
full employment.
13
Economic growth is an increase in a nation's output of goods and services over time.
False
True
14
Which type of economic system is the gov. most likely to provide people with goods/services they couldn't afford?
free enterprise economy
command economy
traditional economy
market economy
15
Why is economic growth an important goal of the United States?
To better satisfy the wants and needs of a growing population.
It is the only way to achieve economic equality.
Americans have a strong sense of fairness.
It leads to price stability.
16
Which of the following statements BEST describes the purpose of the production possibilities curve?
It predicts the future production of a nation.
It shows which products are most profitable.
It shows all possible combinations of goods/services that can be produced.
It identifies trends in production.
17
Which of these economic systems have the least in common?
free enterprise economy and market economy
command economy and socialism
command economy and capitalism
market economy and capitalism
18
How does the government operate in a free enterprise economy?
It tells businesses what to produce and what to sell.
It interferes with businesses only when it is profitable.
It takes a "hands-off" approach.
It establishes laws and rules to maintain competition.
19
Refer to the production possibilities curve. What does moving from point b to c require?
producing less military goods to boost the output of civilian goods
producing less civilian goods to boost the production of military goods
a decrease in unemployment
technological change
20
Which of the following describes a disadvantage of a traditional economy?
individuals have freedom to produce what they want
new ways of doing things are discouraged
difficult decisions are made by the state
everyone knows his or her role
21
Which of the following is a major advantage of a market economy?
It can change direction rapidly as needed when markets change.
There is a high degree of individual freedom.
People are likely to be offered goods and services they cannot afford.
There is sufficient government control of production and distribution.
22
What gives people and businesses the opportunity to make their own decisions?
economic equity
private property
economic freedom
profit motive
23
All of the following are weaknesses of a command economy EXCEPT that it
can change direction drastically in a short time.
requires a large decision-making bureaucracy.
lacks the flexibility to deal with minor problems.
provides few incentives for people to work hard.
24
Why are consumers powerful?
They drive decisions about what to produce.
They help decide a business's opportunity costs.
Their interests force producers to behave ethically.
They have more rights than corporations.
25
All of the following are disadvantages free enterprise capitalism EXCEPT
uneven economic growth.
creation of wealth.
large supply-side tendencies.
growing gap between rich and poor.
26
Actions in one part of the country or world that have an economic impact on what happens elsewhere are examples of
economic interdependence.
specialization.
trade-offs.
opportunity costs.
27
A circular flow model shows how
some interactions occur in a market economy.
all interactions occur in a traditional economy.
some interactions occur in a command economy.
all interactions occur in a market economy.
28
Is it possible for this country to produce $5 billion worth of military goods, and $9 billion dollars of civilian goods?
Yes, and they would have resources left over.
yes, as long as it fits on the graph, it can be produced.
No, this country doesn't need that many civilian goods.
No, there are not enough resources.
29
What are the three basic questions about the production of goods all societies are faced with?
what, where, when
what, how, and why
What, how, and for whom
when, where, and for whom
30
What economic concept is represented by the photograph above?
scarcity
specialization
wealth
opportunity costs
31
With voluntary exchange, a buyer and seller agree to do business together
to benefit only the seller
to benefit only the buyer
to benefit the buyer and the seller
to benefit neither
32
Three synonymous terms to describe the U.S. economic system are free enterprise, capitalism, and
competition
free command
free market
economic freedom
33
Jacob gets a job at Target, which pays him an hourly wage in exchange for his labor. Jacob is participating in
capital market
entrepreneurship.
the factor market.
the product market
34
What is the value of all final goods and services a country produces in a year (most comprehensive measure of output)?
financial capital
standard of living
gross domestic product
cost-benefit analysis
35
Which of the following is a disadvantage of a market economy?
It restricts creativity and new ideas for doing things.
It sustains a high degree of uncertainty.
It does not allocate resources as efficiently as possible.
It restricts personal freedom.
36
What type of economy is the most prevalent in the world today?
market
command
mixed
traditional
37
What is the name of the federal health insurance program for senior citizens?
Medicaid
Social Care
Social Security
Medicare
38
What is the struggle among sellers to attract consumers by offering the best products at the lowest prices?
profit motive
voluntary exchange
private property
competition
39
An efficient use of scarce resources leads to
scarcity.
capital.
productivity.
investment.
40
Division of labor is important because
companies do not want workers to talk to one another.
it increases efficiency by ensuring workers become good at specific tasks.
it increases efficiency by ensuring all workers become good at every task.
it prevents specialization.
41
Markets in the free enterprise system are seldom regulated by
the government.
entrepreneuers.
business.
consumers.
42
Protections from layoffs, illnesses, injuries or disabilities falls under the goal of
economic equity
economic efficiency
economic growth
economic security
43
What role is the government playing in a free market economy when they ensure safety in air transportation?
regulator
provider
protector
consumer
44
Into what four categories do economists divide factors of production?
land, capital, money, entrepreneurship
resources, labor, money, capital
land, entrepreneurship, capital, labor
entrepreneurship, resources, labor, money
45
There is more government regulation in a market economy than a command economy.
False
True
46
What would a business use to decide whether a certain action is worth the cost?
circular flow model
production possibility comparison
cost-benefit analysis
needs assessment
47
A general rise in the level of prices over time is
a catalyst.
voluntary exchange.
profit.
inflation.
48
Economics is BEST defined as the study of how societies deal with
the paradox of wealth.
the problem of scarcity.
the factors of production.
the division of labor.
49
The study of economics is important because it enables us to
understand a free enterprise economy
understand how wages are earned and spent and how jobs are created.
to become better decision makers.
all of the above
50
What does the saying "There is no such thing as a free lunch" mean?
everything costs something
most things cost nothing
some things cost nothing
most things cost something
