An advantage of a corporation is that

owners have limited liability for debt

All the following are weaknesses of a command economy EXCEPT that it

can change direction drastically in a short time

Why are entrepreneurs important in a free enterprise economy?

Entrepreneurs start new businesses

Which of the following societies are examples of traditional economies?

African Mbuti, Australian Aborigines

Which of the following is NOT a capital good?

a vacuum clearner for sale at an appliance store

Which of the following lists the four factors of production?

land, labor, capital and entrepreneurs

Specialization refers to

performing one task relatively more efficiently than another

Which is an example of economic growth

When a new factory opens and 2000 are created

Regulates the sale of stock in a corporation

Securities and Exchange Commission

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Economics Unit 1 Test Review

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Review for Chapter 1-3 test

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Questions 22

Answers

1
The story of economics helps people to
understand the free enterprise system
become better decision makers
make wise choices for political candidates
all of the above
2
Who plays the role of protector, consumer, regulator, and promoter of economic goals in the US?
government
workers
entrepreneurs
business
3
An advantage of a corporation is that
owners pay fewer taxes
owners have limited liability for debt
owners direct control over daily management
the business is subject to little government regulation
4
This occurs when in the marketplace when there are many companies fighting to earn business
inflation
competition
dupoly
monopoly
5
All the following are weaknesses of a command economy EXCEPT that it
provides few incentives for people to work hard
requires a large decision making bureacracy
can change direction drastically in a short time
lacks the flexible to deal with minor problems
6
A merger of corporations involved in different steps of manufacturing or marketing is known as
vertical merger
horizontal merger
conglomerate
multinational merger
7
Which of the following is NOT a basic economic question
WHEN to Produce
HOW to produce
FOR WHOM to produce
WHAT to Produce
8
Why are entrepreneurs important in a free enterprise economy?
Entrepreneurs pay high wages to their employees
Entrepreneurs start new businesses
Entrepreneurs help define the 7 economic and social goals
Entrepreneurs don't pay taxes
9
What is the fundamental problem of economics
capital
scarcity
the factors of production
labor
10
What is another term for a modified private enterprise economy?
command economy
mixed economy
pure capitalism
free enterprise
11
What type of economy collapsed in the communist bloc countries of E. Europe and the former SU.
Command
Free Enterprise
Market
Traditonal
12
Which of the following societies are examples of traditional economies?
US, Japan and Germany
North Korea and Cuba
African Mbuti, Australian Aborigines
North Korea, Egypt, Democratic Republic of the Congro
13
Which of the following is NOT a capital good?
a dump truck at a construction site
a cash register at a grocery strore
an over at a bakery
a vacuum clearner for sale at an appliance store
14
Which of the following lists the four factors of production?
labor, land, capital and scarcity
land, labor, wants and entrepreneurs
land, labor, capital and entrepreneurs
labor, needs, capital and entrepreneurs
15
Which is an example of a service
nail polish remover
a manicure
nail polish
nail clippers
16
How do consumers exercise their power in the the American economy
by deciding what to purchase
by saving their money
by working for business
by becoming entrepreneurs
17
Specialization refers to
the use of the four factors of production
arranging work so that workers do fewer tasks than before
the process of creating goods and services
performing one task relatively more efficiently than another
18
Which of the following is an example of a good
an oil change
a tune up
a truck
a car wash
19
For something to have value it must
have utility
never go out of style
cost a lot of money
be on sale
20
Which is an example of economic growth
When a new factory opens and 2000 are created
An employer is fined for refusing to hire minorities
The price of fruit increases sharply in the spring
An man decides to quit his job
21
All of the following are characteristics of capitalism EXCEPT
economic freedom
private property rights
profit motive
government control
22
Regulates the sale of stock in a corporation
labor unions
stock brokers
Securities and Exchange Commission
chamber of commerce

Economics Unit 1 Test Review Flashcards | StudBud