Duplicate of Economics Unit 1 Review

Question 1

According to Adam Smith's__________, competition helps to self-regulate and leads to __________

Accepted Answer

Invisiable hand and leads to better products.

Question 2

Which economic system answers the basic questions through custom and the barter system?

Accepted Answer

Traditional

Question 3

A way to compare the cost of an action with the benefits of that action

Accepted Answer

Cost-benefit analysis

Question 4

Which system puts the government over public sector and individuals over the private sector?

Accepted Answer

Mixed

Question 5

A service

Accepted Answer

an action that one person performs for another, for pay

Question 6

Resources used to make all goods and services

Accepted Answer

Factors of Production

Question 7

When an economy shifts from making one good to producing another, there is always loss called

Accepted Answer

Opportunity Cost

Question 8

Adam Smith believed government intervention should ______; it is important to the _________ system.

Accepted Answer

be limited but to a certain extent; Free Market

Question 9

A point on a PPF that is OUTSIDE the curve represents what?

Accepted Answer

Impossible production

Question 10

How does a country answer the basic economic questions?

Accepted Answer

Using their economic goals

Question 11

The U.S closely resembles this type of economic system

Accepted Answer

A Mixed Economy leaning towards the free market.

Question 12

Capital is

Accepted Answer

any human-made resource used to produce other goods or services

Question 13

Every decision made involves trade-offs because of what economic concept?

Accepted Answer

scarcity

Question 14

What is the opportunity cost for this economy to go from production pt. C to production pt. D?

Accepted Answer

3 Guns

Question 15

A good is

Accepted Answer

a physical object that humans produce and sell

Question 16

You choose to spend $20 on a book instead of a movie. Your opportunity cost was:

Accepted Answer

The movie

Question 17

What is the first question that every economy must answer?

Accepted Answer

What will be produced?

Question 18

Which economic system provides the LEAST amount of consumer choice?

Accepted Answer

Command

Question 19

Which economic system has the MOST government control over the economy?

Accepted Answer

Command

Question 20

A point INSIDE a production possibilities curve represents what?

Accepted Answer

Inefficiency

Question 21

What does a PPF represent?

Accepted Answer

Alternative possible uses for an economy's resources

Question 22

Which principle of economics states that because resources are limited, we must make choices?

Accepted Answer

Scarcity Forces Tradeoffs

Questions 22