Which of these is NOT a major role that the U.S. government plays in a market economy?

providing private goods and services

When people use their resources so that marginal benefits exceed marginal costs, they

make rational economic decisions

Why does every economic decision involve an opportunity cost?

resources are scarce & wants are unlimited

Which of the following is an example of a capital investment for a retail store?

buying cash registers and displays

The MOST important factor that determines a nation's rate of economic growth is

how much it can improve productive efficiency

If 2 people are packing & delivering food orders, what is MOST efficient way to do the job?

One person packs all orders, other delivers all orders

How do corrective taxes address negative externalities?

increase private cost of generating the externality

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Economics - Milestone Review Day #1

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Lessons 1-5 from the Milestone packet

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Questions 13

Answers

1
Which of these is NOT a major role that the U.S. government plays in a market economy?
resolving market failures
redistributing income through transfer payments
providing private goods and services
protecting property rights
2
When people use their resources so that marginal benefits exceed marginal costs, they
fail to use resources efficiently
make irrational economic decisions
make rational economic decisions
eliminate the opportunity costs of decisions
3
In a command economy, the means of production are owned by
the central authority
family groups, or clans
individuals
religious leaders
4
When a society invests in education, it improves its standard of living by improving its
capital goods
labor
human capital
entrepreneurship
5
Why does every economic decision involve an opportunity cost?
trade-offs are impossible to make in rational decisions
resources are scarce & wants are unlimited
prices in a market economy are always too high
few decisions have a marginal benefit
6
In a market economy, the allocation of goods and services is determined MOSTLY by
the needs of individuals
decisions of advertisers
the incomes of individuals
regulations of the federal government
7
Which of the following is an example of a capital investment for a retail store?
hiring sales clerks and managers
buying cash registers and displays
renting retail space at a mall
buying ads in local newspapers
8
Which of the following is a public good?
clean air
clothing
a public college/university
satallite television
9
The MOST important factor that determines a nation's rate of economic growth is
how fast its labor force increases
how quickly it can discover new resources
how much it can improve productive efficiency
how much its government improves its fiscal policy
10
If 2 people are packing & delivering food orders, what is MOST efficient way to do the job?
One person packs all orders, other delivers all orders
One person packs/delivers half; other packs/delivers half
Monday, 1 person packs while other delivers; next day switch
Both people work together to pack & deliver orders together
11
A major problem that both producers and consumers face in market economies is
lack of profit motive
lack of freedom
lack of economic security
lack of efficiency
12
How do corrective taxes address negative externalities?
increasing the social cost of generating the externality
decreasing private cost of generating the externality
decreasing social cost of generating the externality
increase private cost of generating the externality
13
How are MOST public goods and services paid for in the United States?
by charitable donations from corporations
by taxes
by charitable donations from individuals
by user fees

Economics - Milestone Review Day #1 Flashcards | StudBud