Compared to market economies, command and traditional economy systems generally have __________.

fewer privately owned businesses

Which of the following is an example of the rule of law in economics?

all market members follow the same rules

What is the Tragedy of the Commons?

not sharing things fairly way to get a short term goal

What are anti trust laws?

Laws that prohibit monopolies and other activity that reduces competition.

Which of the following statements is true about investments in physical and human capital?

They require short-term costs in exchange for improved long-term results.

The United States economy is best described as __________.

a mixed economy with market and government elements

Economics Resources are...

entrepreneurial, land, capital, labour

Which of the following is true about the interactions among voters, bureaucrats, and politicians?

Politicians must earn votes bc they have to win elections to meet goals

Define opportunity cost

The highest valued alternative given up as a result of making a choice.

What is a Special Interest Group?

Individuals with common interests who seek to influence public policy

The market equilibrium price is the price at which __________.

the quantity demanded is the same as the quantity supplied

Which of these attributes is most often associated with a monopoly market structure?

Products sell at higher prices.

Which of these statements BEST explains why entrepreneurs are important to the economy as a whole

They generate innovative solutions to problems faced by consumers.

Diminishing marginal utility means that, as you

consume more, the additional satisfaction from each unit tends to fall

Which would most likely increase the productivity of labor?

An increase in capital investment.

What is Economic Reasoning

Making rational choices by weighing benefits and costs, opportunity costs

Which of the following is true about the financial markets?

They help businesses invest in new capital resources.

Consumer sovereignty means that -

through their purchases consumers decide what is produced

Which of the following is true in comparing the market to the government?

market participants respond to incentives; government officials do as well

Comparative advantage occurs when a country can:

Produce a good for a lower opportunity cost

Which the following statements are true about how technology advancement stimulates economic growth?

Businesses produce goods and services faster, better, or cheaper.

Which is a basic economic question that must be answered by all economic systems?

How will goods and services be produced?

What is absolute advantage ?

Who can produce more with the resources they have

Command Economy Meaning?

one in which a central authority decides what goods will be produced

Rational ignorance refers to:

uninformed about politics because costs outweigh benefits

Unlimited wants, limited resources

The essential difference between a command economy and a market economy is that in a market economy __________.

buyers and sellers determine resource allocation

Which of the following is an example of the rule of law in economics?

all market members follow the same rules

A basic role of entrepreneurs in the economy is to __________.

take the risks associated with starting new businesses

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Econ Final

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Questions 45

Answers

1
Compared to market economies, command and traditional economy systems generally have __________.
fewer privately owned businesses
a wider variety of choices for consumers
fewer government regulations and rules to follow
a higher standard of living among the general population
2
Which of the following is an example of the rule of law in economics?
benefits are based on the size of the company
level of revenue determines which rules have to be obeyed
all market members follow the same rules
the oldest members have more advantages
3
What is the Tragedy of the Commons?
sharing things to go for a long time in a fair way
not getting some Sprite, or other resources
not sharing things fairly way to get a short term goal
deforestation
4
What are anti trust laws?
Laws that prohibit dogs from being president.
Laws that prohibit everything
Laws that prohibit monopolies and other activity that reduces competition.
Laws that prohibit Zoey out of South America
5
Which of the following statements is true about investments in physical and human capital?
They require productivity losses in exchange for reduced upfront costs.
They create little or no opportunity costs or economic risks for companies.
They require short-term costs in exchange for improved long-term results.
They reduce employment opportunities and standards of living.
6
Which of the following are most likely to improve a company's overall productivity?
none of the above
improvements in its trade relations
higher tax rates on its workers' incomes
advances in its technology
7
Technology can increase productivity?
True
False
8
What type of productive resource are iron ore, timber, tuna, and crude oil examples of?
land/natural resources
capital resources
entrepreneurial resources
human resources
9
A simple definition of economics is that it is the science of _____.
the study of the government
decision making
knowledge and skills
Treasures
10
The United States economy is best described as __________.
a pure market economy without government regulation
a mixed economy with market and government elements
a traditional economy
a command economy
11
Economics Resources are...
land, entrepreneurial, market, mixed economy
labour, capital, tertiary, land
entrepreneurial, land, capital, labour
primary, secondary, tertiary
12
Which of the following is true about the interactions among voters, bureaucrats, and politicians?
Bureaucrats have an incentive to further their department’s mission/ goals.
Special-interest groups are groups who seek to receive special benefits.
Politicians must earn votes bc they have to win elections to meet goals
shrug
13
Define opportunity cost
a group of buyers and sellers
total satisfaction received from consuming a good service
The highest valued alternative given up as a result of making a choice.
the price of a good or service increases
14
What is a Special Interest Group?
A group of people who are interesting
Individuals with common interests who seek to influence public policy
Random people who want to be famous
A group of former presidents with opinions
15
The market equilibrium price is the price at which __________.
the government will not intervene in the market
shortages and surpluses will have no effect on the market
surpluses depress the number of goods supplied
the quantity demanded is the same as the quantity supplied
16
Which of these attributes is most often associated with a monopoly market structure?
Competitors enter the market easily.
all of the above
Products sell at higher prices.
Consumers have a wide variety of choices.
17
Public sector or private sector?
private
public
18
Which of these statements BEST explains why entrepreneurs are important to the economy as a whole
They generate innovative solutions to problems faced by consumers.
They drive down the prices of substitute goods.
They expand the choices available to consumers.
They create ways for individuals in the economy to become wealthy w/o risk.
19
Diminishing marginal utility means that, as you
hire more labor, the marginal product begins to fall
consume more, the additional satisfaction from each unit tends to fall
hire more labor, the total amount produced begins to fall
consume more, the total satisfaction you obtain tends to fall
20
Buyers and sellers have the most freedom to make economic decisions in a ________
Market system
Traditional system
Command system
Tragedyof the commons
21
Which of the following factors influence a country’s level of economic freedom?
size of government
amount of personal choice
political structure
cost of land
22
Advances in technology will most likely improve a company's overall productivity?
True
False
23
Which would most likely increase the productivity of labor?
decrease in the use of labor-saving technology
An increase in capital investment.
An increase in interest rates for business loans.
A decrease in the pay of corporate executives.
24
What is Economic Reasoning
a. saving technology
None of the above
Making rational choices by weighing benefits and costs, opportunity costs
Theory that consumers influence production decisions in market economy.
25
Which of the following is true about the financial markets?
They help businesses invest in new capital resources.
Individual savers can seldom participate in them.
They require close government supervision in order to set fair prices.
They are not important for the economy's growth.
26
Consumer sovereignty means that -
businessmen control demand as well as supply
consumers vote for politicians who make decisions for them
through their purchases consumers decide what is produced
consumers must buy what the government makes
27
Which of the following is true in comparing the market to the government?
all of the above
market participants face competition, but government officials do not
market participants face scarcity, but government officials do not
market participants respond to incentives; government officials do as well
28
Managers, technical trainers, and accountants are examples of a company’s __________.
capital resources
all of the above
natural resources
human resources
29
Which type of economy relies on social customs to answer the economic questions of the nation?
Command
Traditional
MIxed Market
Shrug?
30
Comparative advantage occurs when a country can:
Produce less of a good
Produce more of a good
Produce a good for a higher opportunity cost
Produce a good for a lower opportunity cost
31
Which the following statements are true about how technology advancement stimulates economic growth?
Fewer outputs mean better quality of life for consumers.
Businesses produce goods and services faster, better, or cheaper.
More inputs are required to get equal or greater outputs.
none of the above
32
Government owns natural and capital resources.
Traditional
Command
Mixed
Market
33
Which is a basic economic question that must be answered by all economic systems?
How will goods and services be produced?
What will be the share of profits that go to businesses?
How will the government collect income taxes?
What will be the amount of the minimum wage for workers?
34
Public Sector Funding...
Comes from Tax Payers
Comes from Charities
Comes from Businesses
35
What is absolute advantage ?
Who can produce more with the resources they have
Least costly
Produce the most and earn the most money
Who can produce with the most resources
36
Which of the following represents creative destruction leading to economic growth?
all of the above
travel-booking websites replace travel agents
cell phone cameras replace cameras
email providers replaced physical letters
37
Command Economy Meaning?
none of the above
one in which a central authority decides what goods will be produced
one in which someones central authoirty to an item
one in which someones central authority
38
Rational ignorance refers to:
uninformed about politics because it doesn't affect you
uninformed about politics because costs outweigh benefits
uninformed about politics because it isn't rational
uninformed about politics because efficacy is low
39
What is scarcity?
Limited resources
Unlimited resources, limited wants
Unlimited wants, limited resources
Unlimited wants
40
Specialization leads to:_________
Voluntary Exchange
Market Competition
Price System
Private Property
41
The essential difference between a command economy and a market economy is that in a market economy __________.
central planning creates an incentive system for consumers/ producers
buyers and sellers determine resource allocation
shortages occur more often than surpluses
prices of products/resources are determined by gov't reg of businesses
42
Which of the following is a way in which private property supports economic growth?
it prevents improvements to property
it discourages recycling
all of the above
it makes ownership valuable
43
Which of the following is an example of the rule of law in economics?
the oldest members have more advantages
level of revenue determines which rules have to be obeyed
benefits are based on the size of the company
all market members follow the same rules
44
Competition exists because of what?
scarcity
externalities
incentives
opportunity cost
45
A basic role of entrepreneurs in the economy is to __________.
show government what new products the economy can produce and sell
buy and sell the common stocks of new corporations
create dividends for investors in new businesses
take the risks associated with starting new businesses

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