What is a mixed market economy?

economic decisions goods and services are guided

Who controls a market based economy?

The government has a limited role, and citizens deal with trade themselves

What is a mixed economy?

Combined market economy with government involment

What are perverse incentives?

An incentive that has an unintended and undesirable result

What are the economic systems?

Traditional, Command, Free Market, and Mixed

the imbalance between unlimited wants and limited resources

What is the multiplier effect?

More income leads to more spending, creating more income.

what is a traditional economy

an economy controlled by traditions, customs, and beliefs.

The idea in economics that “there is no such thing as a free lunch” means that

There is a cost involved, even if it appears that no money is exchanged

Opportunity cost refers to

The cost of giving up one thing in order to get something else

What statement would best complete a short definition of economics? Economics is the study of

The efficient use of scarce productive resources

Which of the following is an example of any type of incentive?

All of the above are examples of incentives

Natural resources are

materials found in the earth that people need and value

7. A market economy allows buyers and sellers to do what?

D.Make their own decisions regarding what to buy or what to sell

What is marginal analysis?

Cost and benefits of the add of one unit of an input or good

Cost-Benefit Analysis

how decision makers compare what is sacrificed & gained

Making a choice means

Deciding between many possibilities

what is an economic systems?

The ways in which society answers the economic questions.

How are incentives related to choices?

Incentives motivate people to make certain types of choices

People usually trade with each other when:

They feel they will be better off from making a trade

People must have access to tools and equipment

what is an economic systems?

The ways in which society answers the economic questions.

What are the four factors of production?

Land, Labor, capital, Entrepreneurship

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Week 1 Review - Economics

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Questions 40

Answers

1
What is a mixed market economy?
no government interaction
no economic freedom
economic decisions goods and services are guided
a legal ownership of property by non-governmental
2
Which of the three economic questions would this picture apply to?
How should it be produced?
What should be produced?
Who should share in or own the product?
What is needed to produce the good?
3
Who controls a market based economy?
Buisnesses have full control over the economy
The government has a limited role, and companies run most of the economy.
The government has a limited role, and citizens deal with trade themselves
The government has full control over the economy
4
What is a mixed economy?
Central planners make business decisions like how to produce
Combined market economy with government involment
Economic decisions are made by consumers and business owners
Decisions about resource are made by habit, or custom
5
Command economy also known as
service economy
Governmental economy
planned economy
developed economy
6
What are perverse incentives?
An incentive that has an unintended and undesirable result
An incentive with only one positive result
An incentive that doesn't make sense
An incentive created by a pervert
7
What are the economic systems?
Traditional, Mixed, & Command
Traditional and Command
Traditional, Command, and Free Market
Traditional, Command, Free Market, and Mixed
8
What is scarcity?
the excess of a product that has not been sold
a short supply
the imbalance between unlimited wants and limited resources
the amount of goods and services consumers want
9
Describe a MARKET economy in one word
Safe
Dictator
Freedom
Trapped
10
What is the multiplier effect?
More income leads to more spending, creating more income.
Lowering taxes creates more jobs.
Large populations are more productive with many workers.
11
what is a traditional economy
All of the above
an economy controlled centrally by a government.
an economy driven by country's individual citizens
an economy controlled by traditions, customs, and beliefs.
12
The US uses a mixed economy
False
True
13
The idea in economics that “there is no such thing as a free lunch” means that
There is a cost involved, even if it appears that no money is exchanged
Scarce resources have alternative uses or opportunity costs
Businesses cannot increase their market share by offering free lunches
The marginal benefit of such a lunch is greater than its marginal cost
14
Opportunity cost refers to
The difference between the sale price and the regular price of an item
The cost of giving up one thing in order to get something else
The money needed to start a new business
The highest price consumers will pay
15
What statement would best complete a short definition of economics? Economics is the study of
The efficient use of scarce productive resources
The printing and circulation of money throughout the economy
The equitable distribution of society’s income and wealth
How businesses produce goods and services
16
Which of the following is an example of any type of incentive?
A loss of customers after raising late fees for goods returned late
A tax credit for the use of energy saving appliances at home
All of the above are examples of incentives
Pay reduction at work for low productivity
17
What are Natural Resources?
Produce goods and servies
Increased consumption
An entrepreneur
Raw materials
18
Entrepreneurial resources include all of the following except
innovation
education
knowledge
money
19
Natural resources are
materials found in the earth that people need and value
man-made finished products
the people who do the work
20
which is not one of the basic economic questions
why to produce
for whom to produce
what/how much to produce
how to produce
21
What is command economy?
No one is in charge
Both Government and individuals are in charge
Government is in charge
Individuals are in charge
22
7. A market economy allows buyers and sellers to do what?
A.Follow consumer traditions
B.Interact with government officials to demand production
D.Make their own decisions regarding what to buy or what to sell
C.Commonly own all resources in the economy
23
Which of the following is not included in economic cost
time
incentives
lost opportunities
effort
24
What is marginal analysis?
The point at which a business is able to sell all its output
The difference between total revenue and total cost
Cost and benefits of the add of one unit of an input or good
A tool used in finance to calculate interest rates
25
Cost-Benefit Analysis
set of general plans and principles
how the product will benefit the company
a value that is not included in the price of a product
how decision makers compare what is sacrificed & gained
26
________ economic incentives include sales, coupons, and discounts.
Neutral
Positive
Negative
Floral
27
Making a choice means
Deciding between many possibilities
Being able to get everything
Not thinking of future consequences
Considering your daily horoscope
28
When a limited amount of resources are available, consumers must
wait for more
chose an alternative
fight
demand more
29
The economic way of thinking means that:
People choose all or nothing.
People respond unpredictably.
People choose.
People can have a free lunch.
30
what is an economic systems?
A system where power distribution is included.
the ability to produce more of a given amount of resources.
The ways in which society answers the economic questions.
A system on private ownership trade between buyers sellers.
31
How are incentives related to choices?
Incentives motivate people to make certain types of choices
Incentives have nothing to do with choices
Incentives make it difficult to predict what choices people will make
Incentives rarely influence choices
32
WHEN TWO PEOPLE OR COUNTRIES TRADE VOLUNTARY...
THEY EACH HAVE SOMETHING THE OTHER WANTS
NO ONE FORCES THEM TO MAKE TRADE
ALL OF THE ABOVE
THEY SHOULD BOTH THINK THEY ARE BETTER OFF AFTER THE TRADE
33
People usually trade with each other when:
They feel they will be better off from making a trade
They don’t know what to expect from making a trade
They think they will be worse off after making a trade
They predict that the costs of trading will be greater than the benefits
34
Capital Resources?
Increased consumer spending
People produce goods and services
Things available to be used to produce goods and services
People must have access to tools and equipment
35
What is market economy?
Individuals are in charge
Both government and individuals are in charge
Government is in charge
No one is in charge
36
what is an economic systems?
A system where power distribution is included.
The ways in which society answers the economic questions.
the ability to produce more of a given amount of resources.
A system on private ownership trade between buyers sellers.
37
A way of thinking about a problem that compares the costs of an action to the benefits received
Where'd my stuff go?
Cost-benefit analysis
Lost cause analysis
Cost-loss scenario
38
Thinking at margin is the same as
Adding resources
scarcity
Not thinking clearly
Adding just one more
39
What are the four factors of production?
Water, Air, Earth, Fire
Land, Labor, Capital, Entertainment
Land, Liberty, Capital Entertainment
Land, Labor, capital, Entrepreneurship
40
Human Resources
produce goods and services
increased consumer spending
are natural resources
equipment designed by engineers

Week 1 Review - Economics Flashcards | StudBud