Econ Unit 2 Fundamentals Review

Question 1

Which cost occurs when an individual pays for a piano lesson instead of going to the movies?

Accepted Answer

opportunity cost

Question 2

the study of how people make choices to satisfy needs and wants

Accepted Answer

Economics

Question 3

Investment in education, training, and skill development has been linked to

Accepted Answer

increasing earnings for workers

Question 4

Marginal benefit is MOST related to what economic concept?

Accepted Answer

opportunity cost

Question 5

inefficient production that is a result of not using all available resources

Accepted Answer

Underutilization

Question 6

In a market economy, prices are established by

Accepted Answer

interaction of supply and demand

Question 7

In laissez-faire economics, what is the role of the government in the economy?

Accepted Answer

to help maintain competition

Question 8

Consumer sovereignty is a factor in a free market society.

Accepted Answer

True

Question 9

allocating scarce resources to produce the goods and services keeping production costs low

Accepted Answer

Economic Efficiency

Question 10

Free Market Economies has a centrally planned economy.

Accepted Answer

False

Question 11

the value of the next best alternative when making a choice

Accepted Answer

Opportunity Cost

Question 12

increasing production of goods and services over time; measured by gross domestic product (GDP)

Accepted Answer

Economic Growth

Question 13

protecting consumers, producers, and owners from risks that exist in society

Accepted Answer

Economic Security

Question 14

An investment in improving the skill level of labor is considered an investment in

Accepted Answer

human capital

Question 15

How would Bob MOST LIKELY increase his earnings potential in long run?

Accepted Answer

spend money for additional training and education

Question 16

the reward associated with gaining one additional unit or item

Accepted Answer

Marginal Benefit

Question 17

the output that can be achieved when using all available resources when making something

Accepted Answer

Production Possibilities

Question 18

Command economy is based on a free market with freedom of choice and self-interest.

Accepted Answer

False

Question 19

the process of deciding how productive resources are distributed

Accepted Answer

Allocation

Question 20

land, labor, capital, entrepreneurship

Accepted Answer

Factors of Production

Question 21

consumers decide how to spend or save their incomes; choice to change jobs and join unions

Accepted Answer

Economic Freedom

Question 22

anything created by man to help produce something else

Accepted Answer

Capital

Question 23

ditch digger; computer programmer; international financier are examples of

Accepted Answer

human resources

Question 24

What IS NOT a way to guarantee yourself a passing grade on the Unit 2 Test???

Accepted Answer

Not taking it

Question 25

maintaining constant prices and full employment; keeping economic growth smooth and steady

Accepted Answer

Economic Stability

Question 26

the loss associated with gaining one additional unit or item

Accepted Answer

Marginal Costs

Question 27

Which of these is MOST LIKELY a result of a high unemployment rate in the United States?

Accepted Answer

greater government expenditures for transfer payments

Question 28

Although specialization increases productivity, one disadvantage is

Accepted Answer

loss of flexibility among workers

Question 29

"fair"; right or wrong dealing with income and wealth; equal opportunity to all

Accepted Answer

Economic Equity

Question 30

Workers on an assembly line are an example of

Accepted Answer

specialization

Question 31

Why is the consumer considered "king" in a capitalist economy?

Accepted Answer

consumers determine what products will be produced

Question 32

the basic problem of economics

Accepted Answer

Scarcity

Question 33

decentralized decision making; producers and consumers have control of the economy

Accepted Answer

market

Question 34

Which type of economy has influences from more than one type?

Accepted Answer

Mixed

Econ Unit 2 Fundamentals Review

Questions 34

Econ Unit 2 Fundamentals Review

Questions 34