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Ch. 5: What is the Economic Problem? Flashcards | StudBud
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Ch. 5: What is the Economic Problem?
Ch. 5: What is the Economic Problem?
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1
How is unemployment defined?
The amount of people who do not work.
The amount of people who want to work that cannot find a job.
The amount of people below the poverty line.
The amount of people that are laid off or fired within a fiscal year.
2
From what source do firms get the funds to purchase more real capital?
fundraisers
budget cuts
consumer savings
company profits
3
Which of the following is not one of the four primary economic objectives of a society?
to ensure a fair distribution of income
to maintain a low level of unemployment
to sustain a uniform rate of economic growth
to preserve a stable price level
4
High unemployment often leads to higher levels of crime and despair.
False
True
5
When interest rates rise above the market interest rate, spending on consumer goods is discouraged.
False
True
6
What is the market solution to the output question?
Individual firms determine the labor intensive/capital intensive ratio.
Each individual decides the consumer goods/capital goods tradeoff.
Gov. leaders make only emergency decisions in the con./cap. goods tradeoff.
Gov. com. make all major dec. concerning the labor/capital intensive ratio.
7
What is meant by the consumer goods/capital goods tradeoff?
Every business must sell its cap. goods for con. goods, and vice versa.
Nations should trade both consumer goods and capital goods internationally.
The same business cannot produce both capital goods and consumer goods.
Corp. that produce co. g. cause the prod. of ca. g. to drop, and vice versa
8
Which of the following is not an advantage of the labor intensive approach?
more versatile
lowering the unemployment rate
more trainable
fewer hidden costs
9
Which of the following best qualifies as a period of intensive growth?
America's westward expansion
European colonialism
the Louisiana Purchase
the Industrial Revolution
10
What regulates the flow of money from households to businesses via financial markets?
the market interest rate
the government
the market equilibrium point
financial markets
11
Libertarian fairness is sometimes called "economic Pragmatism."
False
True
12
Who is the Father of Communism?
Milton Friedman
Karl Marx
Alfred Marshall
Vladimir Lenin
13
What is the command solution to the input question?
Individual firms choose the labor/capital ratio.
The interest rate decides the consumer goods/capital goods tradeoff.
Governmental leaders decide the consumer goods/capital goods tradeoff.
Policymakers choose the labor/capital ratio.
14
Some combination of labor and capital is necessary for every business firm.
True
False
15
Which of the following is the primary economic concern of a society?
how to balance the public budget
how to sustain economic growth
how to acquire more economic resources
how to best achieve its economic goals
16
The public provision of further training or education for the unemployed while they search for jobs is often known as
economic leveling.
workfare.
safety-net egalitarianism.
welfare.
17
The input question asks what the nation will produce.
False
True
18
Which of the following is a capital good?
a house
medicine
a book
a plow
19
What viewpoint states that each person has a right to part of the total wealth simply by being part of the human race?
libertarian fairness
Keynesian economics
egalitarian fairness
economic Darwinism
20
Which of the following is not an advantage of the capital intensive approach?
more consistent rate of productivity.
fewer hidden costs
smaller payrolls
more versatile
21
Which of the following is a consumer good?
an automobile
a tractor
a printing press
a welding machine
22
Which is not one of the three scriptural principles should guide Christians' response to the problem of poverty?
Glorify God with our works.
Assume everyone in poverty has no one to blame but themselves.
Love your neighbor as yourself.
Do good to all men.
23
What is economic growth?
An increase of purchasing power of consumers.
An increase in the quality of goods and services a nation can produce
A decrease in the unemployment of a nation.
An increase in the quanitity of goods and services a nation can produce..
24
Immigration can assist in economic growth.
True
False
25
Economic growth is measured by the accumulated wealth of a nation.
False
True
26
Which of the following is not one of the three questions a nation's economic decision makers must answer?
What will a nation produce?
Who will receive what the nation produces?
How dependent a nation will be on imports?
How will a nation produce its goods?
27
Name the two primary types of economic growth
Extraneous and Intensive
Extensive and Intensive
Extensive and Intruistic
Extraneous and Intruistic
