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Introduction to Economics Flashcards | StudBud
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Introduction to Economics
Introduction to Economics
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A review game for Ms. Frischman's Unit One Test
Flashcards
29 cards
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Practice quiz
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Host live
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Questions
29
Answers
1
When we are deciding how much more or less to do or make or buy of something, we are:
thinking at the margin.
acting rationally.
behaving efficiently.
considering production possibilities.
2
Giving up one alternative for another is called:
opportunity cost
trade-off
inefficiency
underutilization
3
What does SPECIALIZATION do for an economy?
It fosters competition.
It makes it more efficient.
It eliminates unemployment.
It makes it easier to control.
4
Which of the following is NOT capital?
the person whose picture is taken by a photographer
the state house where state government is conducted
the computer used by an accountant
the paint used by a housepainter
5
The govt decides between spending $$ on a hospital or border security. This is a(n)
opportunity cost
guns-or-butter tradeoff
production possibility
irrational
6
In a traditional economy, economic decisions are based largely upon:
government control
custom
market forces
technology
7
Markets allow us to:
exchange things we have for things we want or need.
get the lowest prices for what we buy.
sell the most goods we possibly can.
get the highest prices for what we sell.
8
What is one of the most important advantages of a free market economy?
It can change rapidly
It encourages growth and entrepreneurship.
It is easy to regulate
It provides a safety net for the poor and less fortunate
9
Which event in world history MOST revealed the problem with Classical Economic Theory?
World War I
The Industrial Revolution
The Cold War
The Great Depression
10
Economics is the study of how people:
choose from limited resources to meet their needs
calculate their income taxes
respond to war and drought
gain knowledge and skills from study and experience
11
Which of the following is impossible to achieve in a pure free market economy?
economic equality
economic growth
economic freedom
economic efficiency
12
What is the opportunity cost of two new CDs that cost you $30?
Dinner and a movie with your friends this weekend.
Knowing that you are the last of your friends to buy them.
The difference between the cost of making the CDs &the price
Whatever the second choice was to spend the $30 on.
13
A negative economic side effect of production that the govt may take action to correct is a(n):
externality
safety net
free rider
profit
14
The free enterprise system of the US can be best described as:
free market
traditional
mixed economy with limited government and lots of freedom
socialist
15
All the goods and services we produce are:
recyclable
expensive
efficiently produced
scarce
16
Social Security provides:
retirement payments to the elderly
cash payments to people who lose their jobs
healthcare for children
income assistance for poor people
17
Shortages occur when:
many people are unemployed.
businesses can't supply goods and services to meet demand.
all resources are scarce.
interest rates go up.
18
The minimum income needed to support a household is called:
welfare
safety net
poverty threshold
TANF
19
Which of the following is NOT one of the main economic goals of any government?
Keep prices stable.
To regulate banks.
To keep unemployment low.
Steady economic growth.
20
Which of these is an example of a PUBLIC good that might be provided in a mixed economy?
milk
bridge
car
skyscraper
21
Which of the following was a FREE MARKET philosopher/economist?
Friedrich Engels
Josef Stalin
Karl Marx
Adam Smith
22
Which is the MOST LIKELY to have all 3 of its basic economic questions answered by it's govt?
China
Russia
North Korea
United States
23
The public interest is:
the right to buy and sell goods
the concerns of the public as a whole
the right of consumers to have safe products
a property right guaranteed by law
24
The total value of all goods & services produced by an economy in one year is called:
macroeconomics
gross domestic product(GDP)
the business cycle
microeconomics
25
According to Adam Smith, the self-regulating nature of a free market is known as:
competition
"the invisible hand"
safety net
self-interest
26
What is the MAIN purpose of a production possibilities graph?
To keep an economy from underutilizing its resources.
To show alternative ways an economy can use its resources.
To make it possible to increase an economy;s output.
Show how resources are split b/w military and civilian goods
27
The study of the behavior and decision-making of entire economies is known as:
macroeconomics
the business cycle
gross domestic product (GDP)
microeconomics
28
Which is NOT an example of capital at a book printing company?
The skills and knowledge of the people who make books there.
The paper upon which the books are printed.
The oil used to heat the factory.
The office where it is located.
29
Which of the following is NOT a factor of production?
A woman who makes a quilt for $10.00 per hour.
The wood frame on which the quilt is made.
The children who the woman supports with her labor.
The cotton cloth and thread used in making the quilt.
