Basics of Economics

Question 1

The study of the economy as a whole, concerned with GDP, unemployment, government spending, is

Accepted Answer

macroeconomics

Question 2

When a consumer goes shopping, he/she is most likely to buy the _________ priced product?

Accepted Answer

lowest

Question 3

If the United States stopped importing cars from Japan, who would most likely benefit?

Accepted Answer

American automakers

Question 4

When a person rents an apartment, who benefits from the transaction?

Accepted Answer

renter and landlord

Question 5

The four factors of production are land labor, capital and

Accepted Answer

entrepreneurship

Question 6

Under normal circumstances, when the price of a product falls, quantity demanded will

Accepted Answer

increase

Question 7

An economic system based on the private ownership of the factors of production is called

Accepted Answer

capitalism

Question 8

Work done by one person or group that benefits another is called

Accepted Answer

service

Question 9

Economic resources being used to produce maximum output is called

Accepted Answer

efficiency

Question 10

Costs a business incurs regardless of production output is called

Accepted Answer

fixed cost

Question 11

Which of the following is NOT an economic system?

Accepted Answer

production

Question 12

Which of the following is NOT a factor of production?

Accepted Answer

Capitol

Question 13

An advantage to a command economy would be

Accepted Answer

everyone is provided for

Question 14

A large increase in the cost of producing jeans is most likely to result in

Accepted Answer

higher jean prices and fewer jeans bought

Question 15

A business firm tries to maximize its

Accepted Answer

profits

Question 16

How would the United States answer the basic economic question of "What to Produce?"

Accepted Answer

what consumers and producers agree to produce

Question 17

A government's expenses for the year are higher than its revenue for the year, its known as a

Accepted Answer

budget deficit

Question 18

When the economic activity in a country is on the decline, it is called

Accepted Answer

recession

Question 19

Why is the United States considered to have a mixed market economy?

Accepted Answer

because individuals choose what to buy/sell but laws exist

Question 20

A monopoly exists when there is a single

Accepted Answer

seller

Questions 20