The four factors of production are?

land,labor,capital and entrepreneurship.

Market economies usually result in what compared to command economic systems?

more competition among producers

Between two people in a voluntary exchange

Both expect to benefit from the exchange.

Compared to free market economies, command and traditional economy systems generally have

fewer privately owned businesses

Decision about what to produce in a command economy are made by

national leaders and government officials

The United States economy is best described today as

mixed economy with government regulations

Consumers, by definition, are most likely to use their money to

satisfy specific needs and wants

The reason for scarcity is best explained by which statement?

People's wants exceed the resources available.

Sweden provides many public services without charge. Which statements is true?

Citizens pay higher tax rates to pay for public services.

A description of capital resources, that economists refer to are:

Factories,equipment, and machinery.

Economist, Adam Smith, would agree with which of the following statements?

Free markets have the ability to regulate themselves

The "invisible hand", Adam Smith's theory, best describes what situation?

People seeking their own self-interest makes them better off

The study of Economics is best defined as:

people using their resources to satisfy competing wants.

Goods are most often produced as a result of what in a market economy?

interaction between buyers and sellers

studbud

Marks Econ. Chapter 1 and 2 Review

40 termsStudBud Administration753 plays

Econ. review

Flashcards40 cardsFPractice quizPHost liveL

Questions 40

Answers

1
In a market economy, when you purchase a product, you are engaging in:
predatory pricing
monopolistic competition
government regulation
voluntary exchange
2
The four factors of production are?
land,labor,capital and entrepreneurship.
profits,prices,markets and entrepreneurship.
land, financial capital,entrepreneurship, labor.
land,labor,profit and prices.
3
Which economic system answers ONLY by the interaction of buyers and sellers?
Traditional economy
Everything is free economy
Command system
Free enterprise system
4
Thomas Jefferson stated"Free men are not ____. Equal men are not ____."
equal, free
Dictated, elected
Equal, controlled
Controlled, free
5
Illustrations of a market are which of the following?
A person buying spark plugs at an auto parts store.
Owner of a used car business buying car parts.
Phone orders for an electronic gadget.
All of the above.
6
From 1776 to around 1900, which BEST describes the economic system in the U.S.?
Mixed economy
command
pure capitalism
socialism
7
Market economies usually result in what compared to command economic systems?
fewer entrepreneurial opportunities
more government regulations of business
fewer choices available to consumers
more competition among producers
8
Which person is most associated in the command system of economics?
Milton Friedman
Karl Marx
John Stuart Mill
Adam Smith
9
Country X, government owns the land and prices are set by government. What system?
Command economy
A and B
Mixed economy
Free market economy
10
What is a major problem facing all economic systems?
inadequate wants
surplus production
Scarcity
Technology
11
Between two people in a voluntary exchange
Both expect to benefit from the exchange.
No one gains or loses.
Both lose more than they gain.
One gains the other loses.
12
What do you surrender when you move on the spectrum from command system to capitalism
Equality of opportunity
Resources
Freedom
Equality of outcome
13
Compared to free market economies, command and traditional economy systems generally have
fewer privately owned businesses
fewer government regulations and rules to follow
higher standard of living among the general population
a wider variety of choices for consumers
14
When making a choice,what is the highest valued alternative GIVEN UP?
Profit/loss statement
Mutual benefit
opportunity cost
scarcity cost
15
You go into a business for what purpose?
government mandate
have extra money to invest
partnership opportunity
profit (Money)
16
"The Wealth of Nations" was written by whom?
Adam Smith
John Maynard Keynes
Karl Marx
Benjamin Franklin
17
Have $900 for books, stereo and a printer. Chose books and printer. Opportunity cost is?
stereo
$1150
Stereo and books
$900
18
Decision about what to produce in a command economy are made by
entrepreneurs and business investors
buyers and sellers in a process of voluntary exchange
elected community leaders
national leaders and government officials
19
Grill,freezer,hamburger,cash register,fryers.Which is NOT capital?
Grill/fryers
hamburger
cash register
grill
20
The United States economy is best described today as
pure market without government regulation
traditional economy
command economy
mixed economy with government regulations
21
Consumers, by definition, are most likely to use their money to
market new services to the public
purchase raw materials for manufacture
research and develop new products
satisfy specific needs and wants
22
Capitalism wants an equality of opportunity
And an equality of outcome.
And shared resources.
And economic equity.
Not an equality of outcome,
23
The reason for scarcity is best explained by which statement?
Getting products from producers to consumers.
Population is growing faster than production.
None of the above.
People's wants exceed the resources available.
24
Sweden provides many public services without charge. Which statements is true?
Citizens enjoy public services without paying taxes
Citizens pay higher tax rates to pay for public services.
Few participate in government public service programs
Most pay for public services.
25
The decision to produce, how and for whom to be produced, is decided by who?
none of the above
A. consumers
B. businesses
both A and B
26
A description of capital resources, that economists refer to are:
Soil, mineral deposits and other raw materials.
Workers and materials.
Factories,equipment, and machinery.
Money in the bank.
27
An incentive is which of the following?
B. Buy one/get one without cost
A. consistent practice leads to a win for the team
both A and B
C. Increased income leads to increase taxes paid
28
Economist, Adam Smith, would agree with which of the following statements?
Governments need to control the economy
Prices needed to be adjusted so things are fair
Free markets have the ability to regulate themselves
Politicians are better making decisions than consumers
29
The "invisible hand", Adam Smith's theory, best describes what situation?
free markets result in personal hardship and financial ruin
political leaders collect taxes to ensure prosperity.
People seeking their own self-interest makes them better off
Govt subsidies require to improve Econ conditions.
30
Capitalism, decisions about production and distributing of goods and services are made by:
military personal
economist hired by the government
producers and consumers
politicians in the federal government
31
The study of Economics is best defined as:
people using their resources to satisfy competing wants.
types of business organizations.
how the government allocates scarce resource.
the production of goods and recources in a given market.
32
Country Y, gov't regulates business, people own factors of production. What system is it?
free market economy
B and C
command economy
mixed economy
33
Ann wants to play ball and work,She decides to play ball. The opportunity cost is?
Playing softball
Being with friends
There is no opportunity cost, because no money is spent.
Working
34
What do you surrender on the spectrum when moving from free market to the command system?
Resources
Equality
Machinery
Freedom
35
What resources are examples of Iron ore, timber, and crude oil?
capital resources
natural resources
human resources
All of the above
36
An economic system works hand in hand with a country's:
Educational system
Environmental system
All of the above
Political system
37
Market economy pillars are:
price system
private property
all of the above
market competition
38
Goods are most often produced as a result of what in a market economy?
interaction between buyers and sellers
equal sharing based on individual needs
decisions made by a central authority
laws adopted by a majority rule of citizens
39
A person who starts a business and produces a product is an
Broker
Enterpreneur
Partner
Manager
40
Small community,family and agriculture is based on what economy?
Small economy
Command economy
Traditional economy
Mixed economy

Marks Econ. Chapter 1 and 2 Review Flashcards | StudBud