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Economics Chapter 3 Flashcards | StudBud
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Economics Chapter 3
Economics Chapter 3
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1
Producers help allocate scarce resources by seeking opportunities to
market products
lower costs
increase incentives
earn profits
2
The ability for everyone to enter and compete in the marketplace is called
profit motive
legal equality
free contract
open opportunity
3
Government programs that protect people from economic hardships are called a
public safety net
positive externality
free rider
public subsidy
4
Which is an example of a public good?
HD TVs
private landscaping
cell phones
national defense
5
govt payment that helps cover the cost of an econ act considered to be in the public interest
safety net
transfer payment
subsidy
public goods
6
government programs designed to protect people from economic hardships
transfer payment
public goods
subsidy
safety net
7
A market failure occurs when people who are not part of a marketplace interaction
benefit from it
are not affecte by it
make no profit from it
pay none of the costs of it
8
Which of the following received the highest percentage of federal spending?
international affairs
transportation
health
administration of justice
9
Open opportunity helps to ensure that everyone is free to
start businesses
invest in stocks
maximize production
be efficient
10
Which is an example of allocating resources based on profit?
An ice cream shop takes a loss but other ice crm shops open
Itailian rest. earns a profit, cause other Ital. res to open
A coffee shop earns a profit, making the owner a millionaire
A bakery earns a profit by baking excellent muffins
11
getting cash for a birthday is an example
externality
transfer payment
subsidy
public goods
12
highways, mass transit, and education and health care systems are examples of
infrastructure
externality
transfer payment
public goods
13
In modified free enterprise, the government is a consumer in
neither the resource or product market
both the resource and product market
only the product market
only the resource market
14
Free to Choose
was written by
Milton Friedman
Adam Smith
Karl Marx
Gary Dahl
15
In modified free enterprise, the government is a producer for
only households
neither businesses or households
only businesses
both businesses and households
16
goods and services provided by the government and consumed by the public as a group
safety net
subsidy
transfer payment
public good
17
A person who does not pay for a service but benefits from it is called a(n)
investment risk
subsidy risk
free rider
free consumer
18
Individual booksellers that have competed will against chain booksellers have often
ignored customer service
focused on local needs
expanded into chains themselves
undercut the prices of the chains
19
Profit is determined by subtracting the costs of
marketing a product from the revenue gained from selling it
producing a product from the rev. gained by marketing it
producing a product from the revenue gained by selling it
selling a product from the revenue gained by producing it
20
Why did an "informal market" develop in Mexico?
to carry out a government economic program
to avoid government regulations for starting businesses
to increase the profit of established retail stores
to create a market for high-priced goods
21
Which of the following combinations received the most federal spending?
national defense and transportation
administration of justice and veterans' benefits & services
health and international affairs
income security and Medicare
22
A public transfer payment happens when the government transfers income from
donors to recipients who provide something in return
taxpayers to recipient who provide something in return
donors to recipients who don't provide anything in return
taxpayers to recipients who don't provide anything in return
23
side effect of an economic transaction that affects someone other than the buyer or seller
transfer payment
externality
public goods
subsidy
24
What percent of federal spending is allocated for transportation?
10
3
8
5
25
Which is an example of a negative externality?
pollution standards are relaxed by the government
waste materials from a factory pollute a nearby river
a new factory creates jobs for people in surrounding areas
a store closes because of a marked decline in sales
