How would the economy of Canada be characterized?

Mixed, on the side of free market

What is one benefit provided by Social Security?

retirement income for the elderly

Why do markets exist?

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

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

Economy is moving from Centrally planned toward free market

An example of a shortage is limited amounts of ____.

food available bc trucks carrying it are on strike

Which of the following is NOT a key economic question?

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

What is the opportunity cost of a decision?

most desirable alternative given up for the decision

What effect does new technology usually have on the economy?

It makes the economy stronger and more efficient

Which of the following makes someone an entrepreneur?

running a service that hires people to install speakers

What is an important advantage of a free market?

it offers a wide variety of goods and services

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

iron ore, natural gas, fertile soil, water

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

each collective or factory sets its own goals

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

To make buyers more knowledgeable and safer

An efficient economy is one that

uses its resources to make the most goods and services

How could the Chinese economy be characterized?

mixed, but on the side of centrally planned

The lack of which of the following represents a scarcity?

enough workers to do 2 jobs bc there are limited workers

What does the Temporary Assistance for Needy Families program provide?

cash to the states to help run their welfare programs

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

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

car dealers must display a sticker with fuel efficiency

Which of the following is characteristic of a traditional economy?

Children tend to have the same job as their parents did

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

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

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Rewanomics Unit 1 Review

72 termsStudBud Administration89 plays

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

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Questions 72

Answers

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

Rewanomics Unit 1 Review Flashcards | StudBud