An efficient economy is one that

uses its resources to make the most goods and services

How would the economy of Canada be characterized?

Mixed, on the side of free market

An example of a shortage is limited amounts of ____.

food available bc trucks carrying it are on strike

A company that makes baseball caps is underutilizing its resources. What does this mean?

it is producing fewer caps than it could be

What is one benefit provided by Social Security?

retirement income for the elderly

The economy of China is in transition. What does this mean?

Economy is moving from Centrally planned toward free market

Automakers are required to comply with public disclosure laws. Which is an example of this?

car dealers must display a sticker with fuel efficiency

What does a production possibilities frontier show?

the maximum amount that an economy can produce

What does the Temporary Assistance for Needy Families program provide?

cash to the states to help run their welfare programs

Which of the following makes someone an entrepreneur?

running a service that hires people to install speakers

Why does even a free market need some government intervention?

to provide for things that the marketplace doesn't address

Which of the following is characteristic of a traditional economy?

Children tend to have the same job as their parents did

What is an important advantage of a free market?

it offers a wide variety of goods and services

Why does the government make sure that businesses disclose so much info to the public?

To make buyers more knowledgeable and safer

Which of the following is NOT characteristic of a centrally planned economy?

each collective or factory sets its own goals

Human capital includes ____.

a taxi driver's knowledge of city streets

Which of the following lists would an economist consider to be land?

iron ore, natural gas, fertile soil, water

Which of the following is the kind of decision that can be made on the margin?

whether or not to hire new workers, whether or not to build an extra room on a home

The lack of which of the following represents a scarcity?

enough workers to do 2 jobs bc there are limited workers

How could the Chinese economy be characterized?

mixed, but on the side of centrally planned

Which of the following is NOT a key economic question?

How should it be ensured that goods/services are paid for?

Why do markets exist?

allow people to buy what they need and sell what they make

Each check, some of your $ is withheld as Social Security payroll deductions. What is the $ for

Redistributed as cash transfers to elder and disabled people

studbud

Unit 1 Review by JF

72 termsStudBud Administration

Review for Chapters 1-3. Basic Economic principles, economic systems, American Free Enterprise

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Questions 72

Answers

1
An efficient economy is one that
makes the best use of its goods and services
has very few people who do not work for a living
makes the least costly use of its resources
uses its resources to make the most goods and services
2
Goods and services provided for free or at greatly reduced prices
safety net
in-kind benefits
welfare
cash transfers
3
How would the economy of Canada be characterized?
Free market
Centrally Planned
Mixed, on the side of free market
Mixed, on the side of centrally planned
4
What kind of benefit would Section 8 subsidized housing be?
social security benefit
Cash transfer
in-kind benefit
faith-based initiative
5
An example of a shortage is limited amounts of ____.
labor available bc workers have other jobs
food available bc trucks carrying it are on strike
water available for irrigating a crop bc it's used on others
food available bc few people want to buy it
6
In what kind of economy does the government make all the decisions?
socialist
laissez faire
free enterprise
centrally planned
7
A company that makes baseball caps is underutilizing its resources. What does this mean?
it is making caps when it should make shirts instead
it is paying its employees less than it should be
it is running more efficiently than its competitors
it is producing fewer caps than it could be
8
What is one benefit provided by Social Security?
retirement income for the elderly
compensation for all who lose jobs
medical care for the indigent
cash transfers to workers injured on the job
9
Robots are used to make cars quicker. This is growth caused by _____.
human capital
land and natural resources
production possibilities curves
technology
10
Why does the gov't protect authors and inventors by offering them patents and copyrights?
to encourage free trade
to promote innovation
to strengthen American culture
to regulate the business cycle
11
Why are all goods and services scarce?
some people want to have more goods than others
All resources are scarce
Some goods cost more than others
some things are needs and others are wants
12
The economy of China is in transition. What does this mean?
gov't rarely intervenes in free market
individual firms are being sold to the state
Economy is moving from Centrally planned toward free market
Investments are determined by state not privately made
13
What incentive motivates a manufacturer to sell a product?
putting others out of business
popularity of the product
pleasing the consumer
making profits on sales
14
Automakers are required to comply with public disclosure laws. Which is an example of this?
Salesman must sell to anyone regardless of race, sex, etc
car dealers must display a sticker with fuel efficiency
Salesman provides info about competitor's car
automakers must test all cars for crash-worthiness
15
Limited quantities of resources to meet unlimited needs or desires
Shortage
Scarcity
Economics
Labor
16
A new runway opens at the airport and the flight path goes over your house. The noise is a ___.
Negative externality
Positive externality
market failure
free-rider problem
17
What does a production possibilities frontier show?
the maximum amount that an economy can produce
scarce and less scarce resources
an economy that is producing but not at the maximum
global trade-offs and costs of doing business
18
What does the Temporary Assistance for Needy Families program provide?
compensation to all who lose jobs
cash to workers injured on the job
cash to the states to help run their welfare programs
retirement income for the elderly
19
You will still be able to get PBS whether or not you donate $. You don't donate. What problem?
Public good problem
externality problem
public sector problem
free-rider problem
20
Households pay firms and receive goods and services. This happens in the _____ market.
factor
Product
traditional
after
21
Which of the following makes someone an entrepreneur?
running a service that hires people to install speakers
becoming a highly paid dancer
inventing and selling rights to make a computer game
Earning a lot of money as a computer programmer
22
Why does even a free market need some government intervention?
to make sure that the gov't can meet its needs for military
so the gov't has some control over factor resources
to provide for things that the marketplace doesn't address
to ensure the gov't has freedom to tax as necessary
23
Total value of all goods and services produced in a particular economy
open market value
gross domestic product
standard of living
net worth
24
The study of the behavior and decision making of entire economies
economics
microeconomics
quasieconomics
macroeconomics
25
Physical objects that can be exchanged
Factors
Trading cards
Goods
Services
26
Which of the following does a gov't provide as part of a safety net for the people?
General elections every 4 years
unemployment compensation
regulation of commerce
a strong military defense
27
Which of the following is characteristic of a traditional economy?
Children tend to have the same job as their parents did
They are usually based on light economic production
They have a high standard of living
Communities tend to be fast-growing
28
Private organization that attempts to influence public officials to act or vote in certain ways
free enterprise group
market research group
public policy group
interest group
29
Person who consumes a good but does not pay for it
entrepreneur
volunteer user
private consumer
Free rider
30
Economic side effect that makes benefits/costs to someone other than the person deciding
Externality
Fallout
Consequence
Public policy
31
What is an important advantage of a free market?
it offers a wide variety of goods and services
it protects the less fortunate
It does not change unless the gov't directs it
it is easy to regulate
32
Why does the government make sure that businesses disclose so much info to the public?
to make it hard for businesses to make an excess profit
to make it easier for consumers to save money
To make buyers more knowledgeable and safer
to make it easy for businesses to have good information
33
All of the possible alternatives that are given up when a choice is made
Opportunity cost
Externalities
Trade-offs
Cookies
34
Which of the following is NOT characteristic of a centrally planned economy?
each collective or factory sets its own goals
central gov't owns all land and capital
each person is assigned a job
central gov't makes all economic decisions
35
Human capital includes ____.
the salary paid to an accountant
a taxi driver's knowledge of city streets
the machinery used to weave cloth
the equipment used by a doctor to cure a patient
36
Which of the following lists would an economist consider to be land?
farm fields, tractors, pesticides, fertilizers
factories, office buildings, assembly lines, workers
iron ore, natural gas, fertile soil, water
dams, bridges, rock quarries, oil wells
37
Democratic means should be used to distribute wealth evenly throughout a society
Authoritarianism
Socialism
Communism
Capitalism
38
Large farm leased from the state to groups of peasants; common in centrally planned economies
Pasture
Collective
Plantation
Laissez Faire
39
Which of the following is the kind of decision that can be made on the margin?
whether to have a dog or a cat as a pet
whether or not to go on vacation
whether or not to hire new workers
whether or not to build an extra room on a home
40
The lack of which of the following represents a scarcity?
enough workers to work night shift bc pay is too low
orange juice because the truckers are on strike
grapefruit juice because few people want to buy it
enough workers to do 2 jobs bc there are limited workers
41
What is the motivating force behind the free market?
Competition
Specialization
Self-interest
The invisible hand
42
Term that refers to government aid to the poor
Market failure
Welfare
Free rider
Safety net
43
Situation in which goods/services are not fairly distributed
Externality
Free Market
Market failure
Poverty threshold
44
Study of economic behavior and decision making of small units like individuals or businesses
Economics
Microeconomics
Quantumeconomics
Macroeconomics
45
How could the Chinese economy be characterized?
centrally planned
mixed, but on the side of centrally planned
free market
mixed, but on the side of free market
46
Which of the following is NOT a key economic question?
What goods and services should be produced?
How should these goods/services be produced?
Who consumes these goods/services?
How should it be ensured that goods/services are paid for?
47
Why do markets exist?
provide people with public places to exchange ideas
ensure gov't doesn't intervene in manufacturing
allow people to buy what they need and sell what they make
markets ensure economic equity for all people
48
Method used by society to produce and distribute goods/services
Product market
Safety net
Economy
Economic system
49
Each check, some of your $ is withheld as Social Security payroll deductions. What is the $ for
Redistributed as cash transfers to workers injured at work
used to provide medical benefits to Americans over 65
Redistributed as cash transfers to elder and disabled people
put in an account with your name: earn interest til u retire
50
Period of economic expansion followed by a period of contraction
Business cycle
Economics
Depression
Business model
51
A person who believed in Laissez Faire wouldn't like
consumer sovereignty
self-interest as a motivating force in the free market
the invisible hand
government bailouts of banks
52
What is a factory building an example of?
an economic trade-off
technology
physical capital
Human capital
53
What effect does new technology usually have on the economy?
It makes the economy stronger and more efficient
it reduces the available jobs
it reduces the dependence of the economy on business
it slows an economy down for at least a while
54
Any resources that are made by humans and used to create other goods and services
Services
production
capital
labor
55
Which of the following was a Free Market philosopher?
Adam Smith
Karl Marx
Friedrich Engels
Vladimir Lenin
56
Expectation that encourages people to behave in a certain way
Consequence
Incentive
Externality
Interest
57
Which of the following is not an example of a public good?
shopping malls
national parks
municipal libraries
highways
58
Struggle among various producers for the consumer's business
Socialism
Incentive
Self-regulation
Competition
59
What is the most effective way for consumers to make their desires known to businesses?
by protesting and boycotting products
by hiring lobbyists and joining consumer groups
through mail and phone surveys
by the purchases they make
60
Paid effort that people devote to a task
Labor
Investment
Work
Income
61
Part of the economy that involves the transactions of the government
Product market
Public sector
Factor market
Private sector
62
Income people receive for supplying things like land, labor, and capital
product payments
factor payments
investment
interest
63
Location on circular flow model where households purchase goods and services from firms
Product Market
Black Market
Factor Market
Wal-mart
64
Production possibilities increase bc workers are better at using new computers.
growth from production opportunity
Growth from physical capital
Growth from global resources
Growth from technology
65
One's own personal gain
Safety net
Collective
Privatize
Self-interest
66
To sell a state-run firm to individuals
auctioneering
privatize
localize
free enterprise
67
Part of the economy that involves transactions of individuals and businesses
Product market
Private sector
Public Sector
Factor market
68
The resources used to make all goods and services
production possibilities
opportunity costs
production trade-offs
factors of production
69
What is the opportunity cost of a decision?
Best possible way the question could have been decided
different ways a different person might make the decision
most desirable alternative given up for the decision
Series of alternative decisions that could have been made
70
Which of the following is the best example of a public good?
country club
shopping mall
highway system
movie theater
71
Income level below that which is needed to support families or households
Broke barrier
Cash transfers
Poverty threshold
Welfare
72
requirements for companies to provide full information about their products
Public disclosure laws
Freedom of Information Act
Public interest
In-kind benefits

Unit 1 Review by JF Flashcards | StudBud