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Intro to Econ / Econ Systems Assessment Flashcards | StudBud
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Intro to Econ / Econ Systems Assessment
Intro to Econ / Econ Systems Assessment
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#Intro to economics
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
What is one disadvantage of a command system?
Economic and individual freedom is extremely limited
Individuals have too much economic freedom
Everyone knows their place and role in the economy
2
An economy is made up of which two parts?
How businesses save money, and the wealth of a nation
Demand and supply!
The incomes of all people, and government spending
Wealth and resources of a nation / how they manage resources
3
What are "services?"
The best option for consumers to purchase
An activity produced from economic resources
The best option for producers to purchase
A tangible item made from economic resources
4
A mixed economy borrows parts from two or more economies:
True
False
5
What are the four factors of production?
Labor, Capital, Taxes, Revenue
Land, Labor, Capital, Entrepreneurship
Capital, Entrepreneurship, Liberty, Revenue
Land, Labor, Income, Taxes
6
What are the three questions every economic system must answer?
What do we produce, how do we produce, for whom we produce
Where do we produce, for whom to produce, why do we produce?
What do we produce, how do we produce, why do we produce?
7
Which choice best describes entrepreneurship?
The machines, building and equipment
The person who has the idea to produce a good or service
Human effort used to produce goods and services
The natural resources used to produce goods and services
8
What is one disadvantage of the pure market system?
No assistance for those who are too sick, old or young
The government controls all of the factors of production
Individuals have no freedom
9
Who controls the factors of production in a command economic system?
Individuals
The government
Tradition, values and custom
10
What type of economic system do we have in America?
Command
Traditional
Pure Market
Mixed
11
What are "goods?"
The best option for producers to purchase
A tangible item made from economic resources
An activity produced from economic resources
The best option for consumers to purchase
12
An advantage of the pure market system is...
The government steps in during times of economic hardship
Individuals have ultimate economic freedom
People already know role they will play in the economy
13
What is one advantage of a traditional economy?
Close family and community ties
There is plenty of innovation and efficiency
Ultimate economic freedom
14
All economic decisions result in what?
Revenue
Interest
Trade offs
15
What is the basic problem in economics?
People have unlimited wants/needs
Humans are not efficient, so economics tries to solve this
Too many resources for people, so they must make choices
16
According to the Production Possibilities Frontier, any point that is ON the curve means what?
Inefficiently
Efficiently
It is impossible to operate at a point ON the curve
17
Who controls the factors of production in a pure market system?
Tradition, values and custom
Individuals
The government
18
The majority of economic systems in the world are which type?
Traditional
Command
Pure market
Mixed
19
What is the difference between scarcity and shortages?
Scarcity and shortages are the same thing
Shortages are unimportant, and scarcity does not exist
Scarcity is temporary; shortages are permanent
Shortages are temporary; scarcity are permanent
20
Who controls the factors of production in traditional economic system?
The government
Tradition, values and custom
Individuals
