Scarcity always exists because

All factors of production are limited

What is one of the major disadvantages of a centrally planned economy?

There is no incentive to work hard

Production possibilities curves are important tools for

showing the efficiency of an economy or business.

One way government affects the physical flow in a mixed economy is by

purchasing goods and services from firms.

Which is a NOT a key economic question faced by all countries?

How much should be spent on the military?

A point on the production possibilities frontier represents

a point at which an economy is using all resources most productively.

Which of the following could potentially create economic growth?

Creating more efficient capital

What is one key role of a business in the free enterprise system?

To respond to the incentives of competition and profit

Which of the following is a function of firms in the market economy?

They convert land, labor, and capital into goods and services.

Economics is the study of how people

Seek to satisfy their needs and wants by making choices.

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Econ unit 1 Bleess

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Answers

1
Scarcity always exists because
there are more poor people than rich people.
machines and people are inefficient.
changes have occurred in global weather patterns.
All factors of production are limited
2
Which of the following is the best example of a free market economy?
China
North Korea
Cuba
Japan
3
All the goods and services we produce are
in shortage
efficiently produced
Scarce
expensive.
4
What is one of the major disadvantages of a centrally planned economy?
It places individual freedoms above the pursuit of societal goals.
There is no incentive to work hard
It lacks the capacity to produce factory goods due to scarcity
It focuses on rewarding innovation instead of guaranteeing jobs and income.
5
The invisible hand is said to self regulate which economic systems?
communist economies.
traditional economies.
free market economies.
centrally-planned economies.
6
One way the government helps increase economic productivity is by
favoring quantity over quality.
imposing regulations.
increasing taxes
encouraging innovation.
7
Production possibilities curves are important tools for
comparing costs and profits of producing goods and services.
determining the importance of an economy’s resources.
demonstrating which products will sell better than others.
showing the efficiency of an economy or business.
8
One way government affects the physical flow in a mixed economy is by
Controlling the military
taxing households to support firms.
taxing firms to support households.
purchasing goods and services from firms.
9
Which of the following is an example of land?
Trees
Steel
A factory
Plastic
10
The man credited with idea of the free market is?
Duane Johnson
Karl Marx
Adam Smith
Thomas Jefferson
11
Karl Marx created which economic system
Communisim
Socialism
Traditional
Free Market
12
Which is a NOT a key economic question faced by all countries?
What goods and services should be produced?
Who consumes the goods and services?
How much should be spent on the military?
How should goods and services be produced?
13
A point on the production possibilities frontier represents
a point at which an economy is using all resources most productively.
a point at which a nation is producing only one good or service.
a point at which the economic resources are being underutilitzed.
a point of economic growth.
14
Giving up one alternative for another is called
underutilization.
efficiency.
a trade-off.
human capital.
15
Which of the following could potentially create economic growth?
decreasing a labor force
produceing more guns than butter.
making more trade-offs.
Creating more efficient capital
16
The lack of gas for thousands who wanted it during the last hurricane is an example of
that gas is a limited resource.
scarcity of gas.
a shortage of gas
that gas is not an abundant resource
17
In a society with a free market economy, who answers the basic economic questions?
a military commission
a central government
Elected officials
consumers in markets
18
Name this CHARACTER
Happy Gilmore
The Waterboy
Adam Sandler
Billy Madison
19
Who is the first Marvel Super Hero to ever appear in a comic book?
The Human Torch
Mr. Fantastic
Thor
Spiderman
20
What is one key role of a business in the free enterprise system?
To signal producers concerning what and how much to produce
To respond to the incentives of competition and profit
To persuade public officials to pass health and safety law
To determine taxation policy
21
In a traditional economy, economic decisions are based largely on
Science
Religion
Popular vote
Government
22
Which of the following is a function of firms in the market economy?
They supply households with land, labor, and capital.
All of the above
They consume the goods and services that households produce.
They convert land, labor, and capital into goods and services.
23
Which of the following countries is the best example of a centrally-planned economy?
Singapore
U.S.A.
North Korea
Germany
24
Name the character IN the Armidillo suit
Joey
Chandler
The Holiday Armadillo
Ross
25
Which of the following is true about scarcity?
Scarce goods leads to lower prices.
scarcity affects all societies
Scarcity of resources can be eliminated using sound economic policies
Scarcity only exists in poor countries.
26
Economics is the study of how people
respond to war and drought.
create money
gain knowledge and skills from study and experience.
Seek to satisfy their needs and wants by making choices.
27
Which of the following economic systems is generally the most poor?
Mixed
Centrally Planned
Traditional
Free Market
28
When a nation decides between spending on the consumers or the military this is often referred to as a _____ decision.
export or import.
guns or butter.
free market.
farm or factory.
29
Which of the following is a cornerstone of the American free enterprise system?
Low taxes
Government regulation
Private property rights
low competition
30
Which economic goal is most easily achieved in a pure market system?
Environmental protection
equality
innovation
Full employment

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