What is a basic characteristic of all economic systems?

distribution of goods and services

The tools needed to make money in a business

one result of competition in a free enterprise system is

lower prices for products, steady wages and incomes

a thing that motivates or encourages one to do something

What is opportunity cost?

the best forgone opportunity for a choice

When you are on the curve of a Production Possibilities curve what does that represent

combination that can be attained if all resources are used

One of the benefits of the U.S. free enterprise system is the

amount of choices for consumers

An example of opportunity cost is

Taking a vacation instead of fixing a leaking roof

one of the advantages corporations have that sole proprietorship do not is

ease of start up, limited liability

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Economics test review 1

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A #ECONOMICSREVIEW

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Questions 22

Answers

1
What does it mean to be inefficient on a Production Possibility curve
outside the curve
low on the curve
there is no curve
inside the curve
2
What is a basic characteristic of all economic systems?
distribution of goods and services
Price controls
Wage incentives
Small business owners
3
What is capital?
what is on top or below the land
The tools needed to make money in a business
the ideas that are needed to make money
Where the President lives
4
Which of the following economic systems is characterized by a lack of competition?
capitalism
mixed
Command
Free enterprise
5
one result of competition in a free enterprise system is
lower prices for products
fewer consumer choices
steady wages and incomes
improved safety conditions
6
Which one is a Characteristic of a sole proprietorship ?
difficult to raise capital
limited liability
many people are involved
special taxes
7
what is a incentive?
a thing that motivates or encourages one to do something
a trade off
what is lost when you move along the curve
a happy face
8
What is opportunity cost?
a trade off of everything
the best forgone opportunity for a choice
how much it costs to do things
when you lose something important to you
9
What are the two sectors of a Circular flow model?
schools and homes
Government and businesses
Product and resource market
Businesses and Households
10
the United States' economy is
free market
all of the above
Free enterprise
capitalist
11
Which method does a corporation primarily use to raise capital
Selling shares
Donations
sale of products
investments
12
When you are on the curve of a Production Possibilities curve what does that represent
this is impossible for this country to attain
this can be attained without using all the country resources
this can be attained if a technological advance occurs
combination that can be attained if all resources are used
13
Scarcity is a basic economic problem because
governments limit production
resources are limited
opportunity casts limit demand
14
One of the benefits of the U.S. free enterprise system is the
equal distribution of goods and services
guaranteed returns on investments
lack of union participation by workers
amount of choices for consumers
15
what needs to happen if you are outside the PPC and am in an area that is unattainable
just start using all the available resources
make people work harder
need to limit the use of available resources
introduce new technologies
16
A free enterprise system comprises what?
no investment opportunities
government planners
variety of goods
mixing of government and private economics
17
An example of capital is
Dressmakers
production supervisor
cotton and dye
sewing machines
18
choice presents what type of problem in economics
Businesses can sell what they want
Choice is a way of life
People get to decide what they want
Decisions produce costs
19
If you get a job what are you doing?
selling your goods
buying a good
buying a resource
selling your resource
20
An example of opportunity cost is
Buying a cake mix at the store to fix for dinner
going to school
Taking a vacation instead of fixing a leaking roof
going to bed
21
one of the advantages corporations have that sole proprietorship do not is
ease of start up
lack of special taxes
limited liability
rights to all profits
22
Complete government control in an economic system are considered to be
communist
free market
choice based
efficient

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