Which of the following is NOT characteristic of a centrally planned economy?

Each collective or factory sets its own goals

What is the function of an economic system?

to produce and distribute goods and services

An example of a shortage is limited amounts of

water for irrigating a crop because its used for other crops

What best describes the role of government in a free enterprise system?

allow people to operate their businesses to maximize profits

The lack of which of the following represents scarcity?

orange juice because the trucks carrying it are on strike

What is the product market?

market where houses purchase goods & services from firms

Which of the following is NOT a key economic question?

How should it be ensured that goods & services are paid for?

An efficient economy is one that

uses its resources to make the most goods and services

What is the opportunity cost of a decision?

the other decisions that could have been made

What is the purpose of competition?

to act as a regulating force in the marketplace

Which of the following is a critical rule for determining whether something is a public good?

the total benefit to society are greater than the total cost

What is an important advantage of a free market?

it offers a wide variety of goods and services

How would the economy of Canada be likely to be characterized?

mixed, but on the side of free market

Which of the following makes someone an entrepreneur?

inventing & selling the rights to make a computer game.

How could the Chinese economy be characterized?

mixed, but on the side of centrally planned

Which of the following is characteristic of a traditional economy?

children have the same jobs as their parents

What effect does technology usually have on an economy?

it makes the economy stronger and more efficient.

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Basics of Economics

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Unit I test review

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Questions 28

Answers

1
Which of the following is NOT characteristic of a centrally planned economy?
the central government makes all economic decisions
the central government owns all land and capital
each person is assigned a job
Each collective or factory sets its own goals
2
What is the function of an economic system?
to produce and distribute goods and services
to make sure people are paid for their labor.
to give all producers the same access to consumers
to make sure all people have equal access to goods
3
An example of a shortage is limited amounts of
water for irrigating a crop because its used for other crops
labor available because the workers have other jobs
food available because the trucks carrying it are on strike
food available because few people want to buy it
4
What best describes the role of government in a free enterprise system?
allow people to operate their businesses to maximize profits
control business activities
require companies to disclose info to consumers.
decide what companies to form & then let managers run them
5
Any resources that are made by humans and used to create other goods and services are called
services
capital
production
labor
6
The resources used to make all goods and services are the
opportunity costs
production possibilities
production trade-offs
factors of production
7
A countrys production increases because the workers use computers better. This is growth by
production opportunity
technology
physical capital,
global resources
8
What is a factory building an example of?
human capital
an economic trade-off
technology.
physical capital,
9
What does the process of specialization do for an economy?
it fosters competition
it eliminates unemployment
it makes it more efficient
it makes it easier to control
10
What is the struggle among various producers for the consumer’s business called?
incentive,
socialism
competition
self-regulation.
11
The lack of which of the following represents scarcity?
workers to finish 2 jobs cause theres limited supply of work
grapefruit juice because very few people want to buy it.
enough workers to work at night cause the pay is too low
orange juice because the trucks carrying it are on strike
12
What is the product market?
market where firms purchase factors of production from house
the market where income is received for land, labor or capit
the market where payments are received for selling products
market where houses purchase goods & services from firms
13
Which of the following is NOT a key economic question?
How should it be ensured that goods & services are paid for?
Who consumes these goods and services
what goods and services should be produced?
How should these goods and services be produced?
14
An efficient economy is one that
has very few people who do not work for a living
uses its resources to make the most goods and services
makes the best use of all its goods and services
makes the least costly use of its resources
15
What is the opportunity cost of a decision?
the different ways another person might make the decision
the other decisions that could have been made
the best possible way the question could have been decided
the most desirable alternative given up for the decision.
16
What is the purpose of competition?
to act as a motivating force behind the free market.
to cause producers to try to put each other out of business
to act as a regulating force in the marketplace
to cause buyers to have to be careful about their spending
17
Which of the following is a critical rule for determining whether something is a public good?
the total benefit to society are greater than the total cost
the total cost is small for each individual taxpayer
the benefit to each person is greater than the cost
the benefits are greater for the society than for the people
18
What is an important advantage of a free market?
it is easy to regulate
it doesn't change unless the government directs it
it protects the less fortunate
it offers a wide variety of goods and services
19
How would the economy of Canada be likely to be characterized?
free market,
centrally planned
mixed, but on the side of centrally planned
mixed, but on the side of free market
20
Which of the following makes someone an entrepreneur?
running a service hiring people to install sprinkler systems
inventing & selling the rights to make a computer game.
becoming a highly paid dancer
earning a lot of money as a computer programmer
21
How could the Chinese economy be characterized?
mixed, but on the side of free market.
centrally planned
mixed, but on the side of centrally planned
free market
22
Which of the following is characteristic of a traditional economy?
they are usually based on light industrial production
children have the same jobs as their parents
they have a high standard of living
Communities tend to be fast-growing
23
What is the most effective way for consumers to make their desires known to businesses?
by protesting and boycotting products
by the purchases they make
by hiring lobbyists and joining consumer groups.
through mail and phone surveys
24
All economies today are actually
mixed,
command,
market.
traditional
25
What effect does technology usually have on an economy?
it reduces the available jobs,
it reduces the dependence of the economy on business
it makes the economy stronger and more efficient.
it slows an economy down for at least a while
26
Which of the following could be a factor of production?
natural resources
capital resources
all the other choices
human resources
27
What incentive motivates a manufacturer to sell a product?
making profits on sales
putting others out of business
popularity of the product.
pleasing the consumer,
28
Why are all goods and services scarce?
some people want to have more goods than others.
all resources are scarce
some goods cost more than others
some things are needs and others are wants

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