How does competition among firms benefit consumers?

by causing firms to sell higher quality goods at lower price

How is Social Security an example of income redistribution?

tax citizens while working, then give $ to old and disabled

What is the difference between a good and a service?

Goods are objects. Services are actions.

What is Laissez Faire?

The government should not intervene in the marketplace

What is an economic system?

Way a society produces and distributes goods and services

What is the difference between cash transfers and in-kind benefits?

direct payment of $ vs. goods and services for free/little $

In a free market __________ ___________

prices adjust to reconcile scarcity and desires

The opportunity cost of a good is

What is given up in exchange for what you want or need

Why do governments provide safety nets for their citizens?

to fulfill the goal of economic security and predictability

What constitutional guarantees underlie the American free enterprise system?

Private property, free contract, and freedom from unfair tax

Why does poverty exist in a free market economy?

free market creates wealth but doesn't distribute it evenly

Which one is NOT one of the three economic questions?

How to use the factors of production to allocate resources

economic problems are solved by the government and market

Why is the idea of scarcity a starting point for thinking economically?

Resources are limited. Needs and wants are unlimited.

the financial gain made in a transaction

How does welfare attempt to raise poor people's standard of living?

by collecting tax and redistributing to people with little $

Economics is the study of...

how society decides what, how, and for whom to produce

A market can accurately be described as

a place where buyers and sellers meet

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Econ quiz

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A brief quiz on the basics of economics

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Questions 20

Answers

1
How does competition among firms benefit consumers?
People love watching a good fight
by creating a lower rated, potentially higher paying bond
by causing firms to sell higher quality goods at lower price
by creating the effort that people devote to a task
2
How is Social Security an example of income redistribution?
tax citizens while working, then give $ to old and disabled
direct payment of $ vs. goods and services for little/no $
free market creates wealth but doesn't distribute evenly
IDK
3
A command economy decides resource allocation by government planning
True
False
4
What is the difference between a good and a service?
Goods are great. Services are hard.
Goods are money. Services are taxes.
Goods are objects. Services are actions.
Goods are stocks. Services are bonds.
5
Which one is NOT a factor of production?
Labor
Capital
Land
Interest
6
What is Laissez Faire?
The government should not intervene in the marketplace
A carnival where all the rides are broken and no games
A government program designed to help young mothers
The government should intervene in the marketplace
7
What is an economic system?
production of goods and services based on exchange in market
Way a society produces and distributes goods and services
A combination of traditional, market, and centrally planned
Central government decides how to answer economic questions
8
What is the difference between cash transfers and in-kind benefits?
direct payment of $ vs. goods and services for free/little $
by collecting taxes and giving it to poor people
free market creates wealth but doesn't distribute it evenly
IDK
9
In a free market __________ ___________
governments intervene
governments interfere
governments plan production
prices adjust to reconcile scarcity and desires
10
The opportunity cost of a good is
What is given up in exchange for what you want or need
the expenditure on the good
the time lost in finding it
the loss of interest in using savings
11
Why do governments provide safety nets for their citizens?
Because innovation plays a huge role in economic growth
So they don't get hurt performing the trapeze
To reflect a different prioritization of economic goals
to fulfill the goal of economic security and predictability
12
What constitutional guarantees underlie the American free enterprise system?
1st amendment, 2nd amendment, and 5th amendment
Private property, free contract, and freedom from unfair tax
Freedom to purchase, sell, and create profit
Freedom from want, freedom from need, freedom to bear arms
13
Why does poverty exist in a free market economy?
because there will always people who do not produce
because it collects taxes
because the economy shifts from making goods to services
free market creates wealth but doesn't distribute it evenly
14
Which one is NOT one of the three economic questions?
What goods and services should be produced
How to use the factors of production to allocate resources
How should these goods and services be produced
Who consumes those goods and services
15
In the mixed economy
economic decisions are made by firms and the free market
economic questions are solved by government departments
economic allocation is achieved by the invisible hand
economic problems are solved by the government and market
16
Why is the idea of scarcity a starting point for thinking economically?
Resources are limited. Needs and wants are unlimited.
Factors of production are derived from models of scarcity
You have to start somewhere
Opportunity cost drives the three economic questions
17
What is profit?
The height of an economic expansion
the amount charged in order to borrow money
A business owned by two or more people
the financial gain made in a transaction
18
How does welfare attempt to raise poor people's standard of living?
by collecting tax and redistributing to people with little $
by removing the glass ceiling
free market generates wealth, but doesn't distribute evenly
by giving them skills to improve their job opportunities
19
Economics is the study of...
the best way to run society
production technology
how society decides what, how, and for whom to produce
consumption decisions
20
A market can accurately be described as
a place to buy things
Prices adjust to reconcile the allocation of resources
a place to sell things
a place where buyers and sellers meet

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