Economic Thinking and Structures

Question 1

All points inside the Production Possibilities Curve illustrate

Accepted Answer

underutilization

Question 2

What model shows how market economies work by creating visualizations of business interactions?

Accepted Answer

Circular Flow of Money

Question 3

Which subdivision is concerned with large-scale economic activity?

Accepted Answer

Macroeconomics

Question 4

Which subdivision includes individuals in an economy?

Accepted Answer

Microeconomics

Question 5

Based on laissez faire theory, the economy functions best when the government

Accepted Answer

does not interfere in business activity

Question 6

Mark Zuckerberg is an example of

Accepted Answer

an entrepreneur

Question 7

Joe decides to study for a test rather than go to baseball practice. Not going to practice is a

Accepted Answer

opportunity cost

Question 8

Individual decision and supply and demand have the greatest influence in which type of economy?

Accepted Answer

market economy

Question 9

Which idea expresses that consumers have the ultimate control over what is produced?

Accepted Answer

consumer sovereignty

Question 10

Which of the following is NOT an advantage of a command economy?

Accepted Answer

world's most efficient economic system

Question 11

Which of the following is NOT an assumption of the Production Possibilities Curve?

Accepted Answer

Many different goods and services can be produced

Question 12

Which type of economy might include state set prices, production quotas, and central planning?

Accepted Answer

command economy

Question 13

Which of the following is NOT an advantage of a market economy?

Accepted Answer

Unemployment is eliminated

Question 14

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

Accepted Answer

low prices often cause shortages

Question 15

Which of the following is NOT a factor of production?

Accepted Answer

profit

Question 16

An economic structure that follows past practices and religious beliefs is most likely a

Accepted Answer

traditional economy

Question 17

On a Production Possibilities Curve, "butter" commonly symbolizes

Accepted Answer

consumer spending

Question 18

The situation that exists when there are not enough resources to meet human wants is known as

Accepted Answer

scarcity

Question 19

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

Accepted Answer

does not provide for all the people

Question 20

What model shows the maximum goods or services that can be produced using limited resources?

Accepted Answer

Production Possibilities Curve

Question 21

All points outside the Production Possibilities Curve illustrate

Accepted Answer

production impossiblities

Question 22

Which of the following would be an example of capital?

Accepted Answer

all of the above

Question 23

According to Adam Smith's invisible hand theory, the economy should operate based on

Accepted Answer

individual self-interest

Question 24

Which of the following is NOT one of the three basic questions of economics?

Accepted Answer

When will it be produced?

Economic Thinking and Structures

Questions 24

Economic Thinking and Structures

Questions 24