Markets and Economies Test

Making decisions through voluntary exchange & sending signals about goods & services is the role of the...

What part of the PPC are these lines pointing to?

When individuals and businesses focus their efforts on a small number of tasks or activities

Any arrangement that allows buyers and sellers to exchange things

All natural resources used to produce goods and services

Any human-made resource that is used to produce other goods and services

T/F: The Soviet Union is a historical example of a mixed economy

People who open a business and decide how to combine resources to create goods and services; help fuel economic growth

T/F: A decrease in the factors of production would cause the PPF to shift down.

Human-made objects used to create goods and services (buildings, machines, etc.)

Which of the following is NOT one of the three economic questions?

The study of how people seek to satisfy their needs and wants by making decisions

Economic concept that allows consumers and producers to decide what, when, and how they buy or sell

The line on the Production Possibilities Curve

Own personal gain; motivating force in a free market

Any point outside of the PPF; points that are not possible to reach with the currently available resources

Carrying out responsibilities to protect private property, contracts, and other business activities is the role of...

What is this area on the PPC called?

The study of individuals, businesses, and markets; the small picture

Effort that people devote to tasks for which they are paid

What part of the PPC is this arrow pointing to?

Allows people to decide what agreements they enter into

A range of economic & political systems based on the belief that wealth should be evenly distributed throughout society

The study of the entire economy

The struggle between producers and dollars of consumers

Knowledge and skills a worker gains through education and experience

In terms of free enterprise, the US is often referred to as the land of....

T/F: Increase in the factors of production would cause the PPF to shift down.

Economic system in which the gov't owns & controls ALL resources and means of production & makes ALL economic decisions

An economic concept that states that limited amounts of goods & services are available to meet unlimited needs & wants

Give people the right to control their possessions and use as they wish

Any point inside of the PPF; use of fewer resources than economy is capable of using

What is this area on the PPC called?

Scottish philosopher that is oftentimes referred to as the Father of Economics

Organization that uses resources to produce a product or service, which it then sells

An economic system that is organized with some free-market elements and some socialist elements

A person or group of people living in a single residence; own the factors of production

An economy in which the government decides what to produce, how to produce them, and who gets them.

What book did Adam Smith write that describe the functions of the marketplace?

The term Adam Smith used to describe how in free markets, the marketplace runs itself without any gov't

What drives individuals & businesses to make decisions that improve their well-being

Any point on the PPF; max combination of two products that can be produced

Name of the man who gave rise to communism in the 1800s

A principle that everyone has the same legal rights

Deciding how to combine the factors of production to create new goods and services is the role of....