A market economy depends on

private ownership and control of resources

One weakness of market systems is that

they cannot guarantee security and fairness

To pay for MOST public goods and services in the United States,

the govt collects taxes from individuals and businesses

Which could cause the shift of the demand curve from D1 to D2 in the graph above?

A new health report says that yogurt keeps you healthy.

What is the opportunity cost of spending $20 on a football game instead of a jacket?

the benefit of owning a warm jacket

The MAIN reason that modern command economies have failed is

government decision-making led to shortages and inefficiency

Which sentence BEST describes the economic problem of scarcity?

It is the basic economic problem facing all societies.

Which sentence BEST describes the effects of regulation and deregulation?

Both regulation and deregulation have benefits and costs.

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Economics EOC Review 1

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The following questions are review questions from Fundamental Concepts and Microeconomics in accordance with the GPS for Economics.

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Questions 15

Answers

1
If the U.S. govt buys airplanes from an American company, the govt is participating in the
factor market
public market
product market
stock market
2
A market economy depends on
an equal distribution of wealth
private ownership and control of resources
limited competition and profits
government ownership and control of resources
3
Look at the PPC. Which point represents an inefficient use of resources?
Point F
Point C
Point E
Point D
4
Your local electric company operates in a market structure known as a(n)
oligopoly
monopolistic competition
monopoly
perfect competition
5
One weakness of market systems is that
they cannot guarantee security and fairness
they do not respond quickly to change
they provide very few choices for consumers
they allow producers very little freedom
6
In which type of economic system does the government control all economic resources?
mixed
command
traditional
market
7
The MAIN requirement for any type of money to become a medium of exchange is that it be
made of precious materials
easy to carry
accepted as payment
easy to divide into units
8
To pay for MOST public goods and services in the United States,
the govt collects fees from those who use them
private charities collect donations
the govt collects taxes from individuals and businesses
buyers pay corporations to deliver public goods and services
9
Which could cause the shift of the demand curve from D1 to D2 in the graph above?
A new health report says that yogurt keeps you healthy.
Yogurt prices rise due to a milk shortage.
A new health report says that yogurt makes you sick.
Yogurt prices fall due to a milk surplus.
10
What is the opportunity cost of spending $20 on a football game instead of a jacket?
$20
the benefit of owning a warm jacket
the opportunity to learn about football
the enjoyment of the football game
11
The MAIN reason that modern command economies have failed is
consumers demanded more freedom in the marketplace
governments favored public works over consumer goods
housing prices were too high
government decision-making led to shortages and inefficiency
12
The flow of money from consumers to producers is illustrated by the path from
8 to 6
1 to 3
4 to 2
5 to 7
13
Which sentence BEST describes the economic problem of scarcity?
It exists only after a natural disaster.
It exists only in poor, underdeveloped nations.
It existed only in the past when there was no technology.
It is the basic economic problem facing all societies.
14
Which sentence BEST describes the effects of regulation and deregulation?
Regulation helps sellers, while deregulation helps buyers.
Regulation benefits buyers, deregulation benefits sellers.
Both regulation and deregulation have benefits and costs.
Regulation helps both buyers and sellers; deregulation hurts
15
Rosa started a petwalking business. What productive resource does Rosa represent?
capital
entrepreneurship
land
labor

Economics EOC Review 1 Flashcards | StudBud