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Economics - unit 2 (standards 4 & 5 and MIcro. 1) Flashcards | StudBud
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Economics - unit 2 (standards 4 & 5 and MIcro. 1)
Economics - unit 2 (standards 4 & 5 and MIcro. 1)
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Economic Systems, Government Involvement and the Circular Flow Model
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Questions
30
Answers
1
What does it mean if point X is unattainable on the production possibility curve?
Resources are there but unable to be used
Resources are being used but are not used properly
Resources are not available
Resources are abundance
2
Command economies have high degrees of government interaction, they meet which economic goals?
Growth and efficiency
Freedom and Growth
Efficiency and Freedom
Stability and Equity
3
All are reasons that the gov't decides the amount of public goods that are produced, EXCEPT
costs and benefits must be weighed for the whole community
individuals are less likely to make informed decisions
the market alone will not produce enough
competition and quality must be regulated
4
Use of the minimum wage supports which of the following ideas?
full employment
economic growth
economic equity
economic efficiency
5
Competition and Free Enterprise are most common in which type of economic system?
Mixed
Command
Market
Traditional
6
Reducing laws and rules businesses have to follow is called
profit motive
incentive
deregulation
regulation
7
Each society answers the 3 economic questions based on
desire to achieve economic freedom.
degree of economic growth.
number of factor payments.
values and goals.
8
Owns the resources used, sells the resources, and uses the income to purchase products
households
factor market
businesses
product market
9
Which of the following is a summary of the three key economic questions?
How, when, & from whom should consumers get what they want?
What goods & services should be produced, how, and for whom?
Who will buy which goods& services, &how much will they pay?
When, where,& by whom should goods and services be produced?
10
What do people supply in return for factor payments?
services, goods, or traditions
land, labor, or capital
innovation, labor, or trade
innovation, profit, or goods
11
Which group of people will determine the products that a free enterprise economy produces?
producers
private property owners
government
consumers
12
Copyrights, trademarks, and patents are all ways the gov't try to serve what gov't role?
resolve market failures
deregulations
protecting private property
redistribute income
13
A market-based economic system with some government involvement
laissez-faire
free enterprise system
mixed economy
economic transition
14
The method used by a society to produce and distribute goods and services
safety net
innovation
income
economic system
15
To pay for most public goods and services that are provided the gov't does what?
collects taxes
pays minimum wages
enforces the deregulation of laws
plays the lottery
16
Which of the following is characteristic of a centrally planned or COMMAND economy?
The central government makes all economic decisions.
The central government lets factories set their own goals.
The central gov't allows the market to set wages for jobs.
The central government enforces laissez-faire policies
17
Ways which factors of production are combined determines the answer to what economic question
Who will consume goods?
What will be produced?
How will goods be produced?
When will you produce it?
18
Property owned by individuals or companies
private property
mixed economy
economic freedom
government intervention
19
Copyrights, trademarks, and patents are all ways government try to serve which role?
Protecting Property Rights
Redistributing Income
Providing Public goods and services
Resolving Market Failures
20
The households/individuals are consumers in the product market & _________ in the factor market
buyers
commanders
consumers
producers
21
The way of living that is normal for a person or community
standard of living
income
traditional economy
economic system
22
Buy resources, make products that are sold and use profits to buy more resources is called
individuals/households
businesses
factor market
product market
23
Reducing laws and rules businesses have to follow is an example of
deregulation
regulation
production possibilities
comparative advantage
24
What “invisible hand” directs the free market?
incentives and efficiency
circular flow
competition
specialization
25
People rely on customs to answer economic questions
innovation
traditional economy
economic system
standard of living
26
on the circular flow model, one direction represents $, while the other direction represents _.
imports and exports
goods and services
more money
taxes
27
product markets are always across from ______________________ in the circular flow model.
individuals/households
businesses/firms
factor/resource market
supply and demand
28
Competition and free enterprise are most commonly found in which economic system?
market economy
command economy
mixed economy
traditional economy
29
A chart where goods, services, & resources flow in 1 way; money flows in the opposite direction
Circular flow model
Business cycle
Supply and Demand
Production possibility curve
30
The United States economy is a mixed economy
based on traditional economy, allows some gov't intervention
based on a free market, allowing no government intervention.
based on free market allows some gov't intervention
based on centrally planned economy limits gov't intervention
