Economics is the social science that studies

how to make choices with limited resources

According to the law of diminishing utility

adding to your supply , satisfaction for add unit goes down

A "co-op" function is to

obtain lower prices for members

brings sellers and buyers together

portion of corporate profits paid out to stockholders

the study of economic decisions made by entire economies

The public interest is

the concerns of the public as a whole

the law of demand states

price and quantity demanded are inversely related

Health insurance for the elderly, the poor, and disabled is provided by

medicare, medicaid, social security

what basic principles are fundamental to free enterprise?

economic freedom and private property

What is the difference between a market economy and a centrally planned economy?

centrally planned economies rely on government decisions

what are three goals of a government to keep an economy running smoothly

high employment, steady growth and stable prices

The purpose of a Production Possibility Graph is to

show alternate ways to use an economy's resources

What does limited liability mean?

stockholders can only lose investment

What is meant by "resources" are scarce?

resources are limited compared to wants and needs

Public disclosure laws require

companies to give information about their products

All of the following are decisions made on the margin except

whether or not to go on vacation this year

which is not a disadvantage of a centrally planned economy?

attempts to meet explicitly stated goals

negative externalities arise

when firms "use" resources without paying full costs

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Economics Review

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Questions 41

Answers

1
the legal obligation to pay debts is known as
investment
fringe benefits
liability
business license
2
Economics is the social science that studies
how to eliminate poverty n society
how to eliminate scarcity
how to make choices with limited resources
how to spend tax dollars
3
Which of the following is not a service?
lawn mowing
medical check up
teaching
refrigerator
4
Temporary Aid to Needy Families is an example of
social security
health insurance
in-kind benefits
welfare program
5
According to the law of diminishing utility
adding to your supply , satisfaction for add unit goes down
the more you acquire, the less total utility
more you acquire, the greater utility
market supply will increase
6
which of the following is not an example of a public good
shopping mall
dam
park
airport
7
Which of the following establishes the rules of a partnership
Articles of Partnership
Uniform Partnership Act
8
Which of the following would an economist call an entrepreneur?
factory worker
software developer
math teacher
bank teller
9
Which is not an advantage of a free market system
economic growth
economic efficiencey
economic equality
economic freedom
10
pollution caused by cars is an example of
positive externality
the public sector
negative externality
inefficient allocation of resources
11
A "co-op" function is to
obtain lower prices for members
sell the goods produced by members
work to improve image of workers
save taxes for members
12
A market
always requires face to face purchasing
brings sellers and buyers together
entails the exchange of goods but not services
reflects upsloping curves
13
all of the following are variable costs except
electricity
wages for part time employees
salaries
advertising
14
Using resources in such a way to maximize the productions of goods and services is called
underutilization
thinking at the margin
efficiency
growth
15
A dividend is
a share representing a portion of ownership in a company
a certificate issued by a corporation to repay money
portion of corporate profits paid out to stockholders
joining of two firms together
16
macroeconomics is
the study of economic decisions by families
a period of contraction followed by a period of expansion
the study of economic decisions made by entire economies
a period of expansion followed by a period of contraction
17
government may lesson income inequality by
providing transfer payments
tax the rich more
all of the above
establish legal minimum wage
18
What are assets?
taxes
money and other valuables
a liability
suits against a partnership
19
The public interest is
the concerns of the public as a whole
the right to buy and sell goods
the right of individuals to have safe products
property right guaranteed by law
20
any establishment formed to carry on commercial enterprises is called a
sole proprietorship
partnership
business organization
corporation
21
Determining if a nation will spend more on hospitals or the military is called
decision at the margin
global trade off
production efficiency decision
guns and butter
22
Joining of two firms involved in different stages of production of a good
vertical merger
conglomerate
closely held corporation
horizontal merger
23
the law of demand states
price and quantity demanded are directly related
more buyers in the market the lower the price
consumers will buy more product at a higher price
price and quantity demanded are inversely related
24
Health insurance for the elderly, the poor, and disabled is provided by
unemployment insurance
medicare, medicaid, social security
medicare, medicaid under the unemployment program
worker's compensation
25
what basic principles are fundamental to free enterprise?
state owned property and protection from competition
protection from competition and profit
economic freedom and private property
mandatory exchange and state owned property
26
Each society determines who will consume what is produced based on
economic equity
unique combinations of social values and goals
the amount of factor payments
its needs and wants
27
cities create this to designate separate areas for businesses
business ownership
zoning law
fringe benefits
sole proprietorship
28
What is the difference between a market economy and a centrally planned economy?
economic decisions do not impact centrally planned systems
prices are important to a market economy
centrally planned economies rely on government decisions
a market economy relies on the the use of money
29
what are three goals of a government to keep an economy running smoothly
high interest rates, steady growth, regulated prices
well regulated banks, slow growth, and low prices
high employment, steady growth and stable prices
rapid business cycles, rapid growth, and low employment
30
Organization that attempts to improve the image and working conditions is know as
service corporation
closely held corporation
limited partnershiop
professional organization
31
The purpose of a Production Possibility Graph is to
to make more butter than guns
keep an economy from having nonproductive workers
show alternate ways to use an economy's resources
make it possible to increase an economy's resources
32
Production is defined as
making a profit
creating goods and services
wants and needs
paying opportunity costs
33
What does limited liability mean?
corporation isn't responsible for paying debts of owners
managers are responsible for the debts of the corporation
corporation can raise money by selling more stocks
stockholders can only lose investment
34
What is meant by "resources" are scarce?
resources are difficult to locate
resources are being used unwisely
resources are limited compared to wants and needs
natural resources are bountiful
35
The United States gov't intervenes in the economy to
provide competition for private firms
keep order and promote welfare
regulate the banking industry
impose barriers on all foreign trade
36
Public disclosure laws require
companies to give information about their products
government to disclose their standards
individuals to use only written contracts
companies to protect public property
37
All of the following are decisions made on the margin except
what time to leave during the day for a trip
whether or not to go on vacation this year
how much green beans v corn you can grow
how many workers you can hire to improve production
38
Which of the following is an example of human capital
skills and knowledge
gifts of nature
money
opportunity costs
39
which is not a disadvantage of a centrally planned economy?
it cannot meet consumers' needs and wants
attempts to meet explicitly stated goals
sacrifices individual freedom
it does not reward innovation
40
Which of the following is a LEGAL AGREEMENT for a limited liability partnership
Articles of Partnership
Uniform Partnership Act
41
negative externalities arise
when firms pay more than the opportunity costs of resources
only in societies that utilize central planning
only in capitalist societies
when firms "use" resources without paying full costs

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