Economics- Chapter 1 and 2 Review

Question 1

In which nation does the government play the smallest role?

Accepted Answer

United Kingdom

Question 2

What happens to a PPC when all resources are increased?

Accepted Answer

It slides to the right

Question 3

What advantage do chain stores have over smaller individual stores?

Accepted Answer

can buy huge volumes of goods at discounted prices

Question 4

What type of economics talks about things we ought to do?

Accepted Answer

normative economics

Question 5

What is the purpose of competition in a market system?

Accepted Answer

forces producers to make quality products at low prices

Question 6

A point along the Production Possiblilities Curve demonstrates what?

Accepted Answer

efficiency

Question 7

Which of the following is NOT one of the "3 Big Questions"?

Accepted Answer

Where to Produce?

Question 8

Which type of graph would you use to show a change in price over time?

Accepted Answer

line graph

Question 9

Which factor of production involves the willingness to take risks in business?

Accepted Answer

Entrepreneurship

Question 10

What do you get when you subtract costs from revenue?

Accepted Answer

Profits

Question 11

What do you call a person who uses a good or service?

Accepted Answer

consumer

Question 12

Who owns all the goods and services in a pure capitalist system?

Accepted Answer

individuals

Question 13

Best buy running out of flat screens would be an example of __________.

Accepted Answer

a shortage

Question 14

In a command economy, __________ determines the distribution of resources.

Accepted Answer

the government

Question 15

Wants are limited and ________.

Accepted Answer

ever changing

Questions 15