What is the benefit of a mixed economy?

Government regulation is in place to protect the citizens

discourages the use of new ideas and technology

no government interference in the economy

Because of the idea of scarcity, we have to

decide how we want to use our resources

Standard of living is

how well a person lives (economic standing).

What is Human Capital?

skills that employees have & experience used in business.

The way a country manages its money and resources.

Production possibilities

Is analysis of the alternative ways to use an economy's resources

How does a mixed economic system answers the three basic economic questions.

individuals, society, and government decide.

Which is true of a free enterprise sytem, but not true of a communist economic system?

Govt. has less control over the economy

Human capital includes

the knowledge a taxi driver has of the city streets.

An entrepreneur is a person who …

Starts a new business to promote economic growth

What is the definition of opportunity cost?

The next best alternative that you give up.

Which of the following is the best definition of Scarcity:

Limited needs and wants outweigh the amount of resources available.

What is opportunity costs?

What you have to give up to get something else.

What does the production possibilities curve (PPC) illustrate?

you can only produce one good if you produce less of another

Which one is Not true about a Free Enterprise Economic Sytem?

In other disciplines, it is called a communist system

Within the free enterprise system the government does not regulate any aspect of the economy and allows you

the freedom to start your own business

Scarcity occurs because...

...wants and needs are unlimited but resources are limited

private business operates in competition and largely free of state control

What is a traditional economy?

An economy that is based on what your ancestors did.

Both Nigeria and South Africa have mixed economies. What is a mixed economy?

an economy that is not pure command or pure market

Standard of living measures

how well people are living in a country

Points inside the production possibilities curve...

Represent unused or misused resources.

Economics is the study of

Choosing how to allocate limited resources to satisfy unlimited wants

Factors of production: Land

natural resources available for production

satisfaction a person gets from using a specific product

What is a mixed economy?

an economy that combines free enterprise and some government control

A production possibility frontier (aka curve) represents

the maximum amount of goods that can be made.

What are the factors of production?

Land, labor, capital and entrepreneurship

Who answers the basic economic questions in a mixed economy?

combination of government and market

What is opportunity cost?

the value of the option that you give up by making a choice

Stated that Gov't should NOT get invovled in the economy

ppl may decide what, when, and how they want to buy and sell

Standard of living is...

A measure of economic wellbeing

the government should let businesses do what they want

The slope of the production possibility frontier shows

The opportunity cost of one good in terms of the other

has elements of traditional, market & command economies

Define factors of production.

the resources used to produce all goods and services

Basic Economic Questions

What, how, and for whom to produce?

Which is generally a characteristic of a Command economy?

government agencies are involved in production planning

uses the factors of production to create a business

studbud

Economics Unit 1 Test Review 24-25

58 termsStudBud Administration305 plays

Imported from external platform

Flashcards58 cardsFPractice quizPHost liveL

Questions 58

Answers

1
What is the benefit of a mixed economy?
It gives people a choice whether or not to follow government expectations
Government regulation is in place to protect the citizens
There is no benefit over a market economy
A mixed economy occurs when two countries combine their resources
2
Traditional economy
individuals decide what to produce
characteristics of a market and command
discourages the use of new ideas and technology
government planning groups make all the decisions
3
Laissez faire is
government regulation of big business
owning all steps in the manufacturing process
the creation of monopolies
no government interference in the economy
4
A production possibility curve shows that all things in life involve
a tradeoff
costs
effort
energy
5
Because of the idea of scarcity, we have to
decide how we want to use our resources
worry constantly ab out running out of resources
let businesses decide how we can use our resources
let the government decide how we can use our resources
6
Standard of living is
how well a person lives (economic standing).
what house a person lives in
the ability to read a write.
having a job.
7
Factors of production
Interests
Rent
Land
Profit
8
What is Human Capital?
The number of staff a business has
skills that employees have & experience used in business.
the total wage bill of a business based on no. of employees
the same as manpower planning
9
What is economics?
People depend on each other
The way a country manages its money and resources.
things we use to satisfy our wants and needs
Money, goods, services, supply, and demand
10
Production possibilities
Is analysis of the alternative ways to use an economy's resources
The loss of resources for production
The cost to make one item over another
Is the loss of possibility to produce one item over another
11
Consider the term marginal utility. Which word is the best synonym for "marginal"?
borderline
satisfactory
additional
useful
12
Any production point outside the production possibilities frontier:
Is associated with unused resources.
Is attainable only if prices fall.
Is attainable only if prices rise.
Is unattainable.
13
How does a mixed economic system answers the three basic economic questions.
individuals decide.
government decides.
society decides.
individuals, society, and government decide.
14
factors of production
Is something that business promote
business cards
resources
technology
15
Who decides in a command economy?
Government
Consumers
Traditions
Customs
16
Which is true of a free enterprise sytem, but not true of a communist economic system?
supply of products and resources is controlled by the govt.
demand for products does not affect the price
there is no voluntary exchange of goods and services
Govt. has less control over the economy
17
Human capital includes
the knowledge a taxi driver has of the city streets.
the equipment used by a doctor to cure a patient
the machinery run by a seamstress to weave cloth.
the salary paid to an accountant.
18
An entrepreneur is a person who …
Invests money in a company in order to increase their wealth
Starts a new business to promote economic growth
Saves money for retirement while they are working
19
What is the definition of opportunity cost?
The chance that you will lose your money.
All of the choices that someone else made for you.
The money you spend to buy something.
The next best alternative that you give up.
20
Which of the following is the best definition of Scarcity:
Limited needs and wants outweigh the amount of resources available.
A fundamental problem in society.
A limited amount of resources compared to prices.
A social science dealing with people's needs and wants.
21
What is opportunity costs?
When things are on sale.
There is not enough for everyone.
What you have to give up to get something else.
The demand for goods.
22
What does the production possibilities curve (PPC) illustrate?
you can only produce one good if the product has a high price
you can only produce one good if you produce less of another
you can only produce one good if the product has a low price
you can only produce one good if you produce more of another
23
Which one is Not true about a Free Enterprise Economic Sytem?
In other disciplines, it is called a communist system
All economic resources are owned and controlled by the private sector
In other disciplines, it is called capitalist system.
Resources are allocated through price mechanism/Demand & Supply.
24
Within the free enterprise system the government does not regulate any aspect of the economy and allows you
create laws ensuring the safety of a product
the freedom to start your own business
to sell the factors of production
to exchange without using money
25
Scarcity occurs because...
....wants are needs are finite but resources are unlimited
...wants and needs are unlimited but resources are limited
...wants and needs are limited but resources are infinite
...wants and needs are infinite but resources are unlimited
26
Free Enterprise
trade/industry are controlled by private owners for profit
the manufacturing of goods moved from small shops homes to large factories
private business operates in competition and largely free of state control
27
What is a traditional economy?
An economy that is based on what your ancestors did.
There is no such thing as a traditional economy.
An economy that the government maintains.
An economy that is controlled by the market.
28
Which of these are efficient production possibilities?
None are efficient
A & D
A & B
C & D
29
Both Nigeria and South Africa have mixed economies. What is a mixed economy?
a communist economy
an economy that is not pure command or pure market
an economy that needs more government intervention
an economy with lots of different races of people
30
Standard of living measures
how well people are living in a country
if we are going to war
the population of a country
how tall people are
31
Points inside the production possibilities curve...
Result in more rapid growth.
Represent unused or misused resources.
Are attainable with full use of resources.
Are unattainable.
32
Economics is the study of
Government deciding what to produce, when to produce, and who to produces
People controlling all money and credit within an economy
Choosing how to allocate limited resources to satisfy unlimited wants
Consumers deciding what to buy
33
Factors of production: Land
natural resources available for production
People that organize factors and take risk
the human input int the production process
goods used to make products
34
marginal utility
the desire, willingness, and ability to buy a good or service
satisfaction a person gets from using a specific product
the change in consumption resulthing from a change in real income
the amount of money a company recieves by selling goods or service
35
What is a mixed economy?
an economy that combines free enterprise and some government control
an economy that needs more government intervention
an economy that's planned by a government to fill the needs of its people
a communist economy led by a totalitarian dictator
36
A production possibility frontier (aka curve) represents
the resources that should be used.
how many people to hire.
the technology that should be used.
the maximum amount of goods that can be made.
37
What are the factors of production?
Land, labor, capital and entrepreneurship
There are no factors of production
Employment, ethics, age and gender
Land, labor and enterprise
38
Who answers the basic economic questions in a mixed economy?
combination of government and market
Buyers and sellers
Government
The market
39
What is opportunity cost?
the value of the option that you give up by making a choice
the money you earn when you make good choices
the value of the choice that you make in a given situation
the money you pay when you make bad choices
40
Laissez Faire
Is the OPPOSITE of free enterprise
Argued that companies should pay high wages
Was supported by the Unions
Stated that Gov't should NOT get invovled in the economy
41
Voluntary Exchange
ppl have the right to control their possesions and use them as they wish
anyone can compete in the market place
ppl may decide what, when, and how they want to buy and sell
ppl may decide what agreements they want to enter into
42
Standard of living is...
A way of describing how 'alive' someone is
A measure of economic wellbeing
A measure of personal happiness
A way of measuring someone's quality of life
43
laissez-faire means
the government should control businesses
going to a party
the government should let businesses do what they want
you can do whatever you want
44
The slope of the production possibility frontier shows
The opportunity cost of one good in terms of the other
How factor inputs must be changed to keep them fullyemployed
How consumers are willing to trade one good for another
The technically efficient combinations of the two goods
45
A mixed economy ...
has limited use in today's global economy
has elements of traditional, market & command economies
has elements of both market and command economies
was more useful before the invention of bitcoin
46
Define factors of production.
an alternative we sacrifice when we make a decision
the resources used to produce all goods and services
the most desirable alternative sacrificed
the goods and services produced from resources
47
Scarcity is known as a
California
lack of a resource
abundance of resources
Importing water
48
Basic Economic Questions
Quantity consumers are willing to buy at price.
What, how, and for whom to produce?
Attracting consumers away from competitors.
Framework for evaluating choices systematically.
49
Which is generally a characteristic of a Command economy?
entrepreneurs sell shares in companies to the government
the role of government in the economy is restricted by law
government agencies are involved in production planning
investment is encouraged by the promise of large profits
50
Factors of production: land
machine
wood
worker
money
51
An Entrepreneur
uses the factors of production to create a business
Controls the stock of another company.
Negotiates as a group with employers.
Eliminates Competition.
52
What decides in a Traditional Economy?
Consumers
Heritage
tradition and ritual
Government
53
Marginal utility is...
The utility gained from consuming more products
The total utility of the next quantity consumed
The utility gained from consuming one more product
Always increasing
54
Where would you find an example of a Traditional Economy?
Detroit, Michigan
Alberta, Canada
Remote village in Africa
Sidney Australia
55
command economy
consumers & supply & demand control resources
mostly agriculture, low innovation
government owns and controls resources
some private ownership, some govt. control
56
The US is a mixed economy. This means:
private ownership and government control exits
all of the above
private individuals can do whatever they want
no government control at all
57
Underutilization ?
a point on the curve
a point outside the curve to the right
a point along the production posssibilities frontier
A point inside the curve
58
What factors of production does this picture represent?
Capital
Natural resource
land
labor

Economics Unit 1 Test Review 24-25 Flashcards | StudBud