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Economics Midterm Review
Economics Midterm Review
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Economics Unit 1 Economics Unit 2 Economics Unit 3
Flashcards
73 cards
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Practice quiz
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Questions
73
Answers
1
What are these?
Complementary goods
Substitutes
2
What is economic efficiency?
An increase in ability to produce goods over time.
To make some people better off without making other people worse off.
Opportunity cost of a good rises are more of the good is produced.
Production falls b/c resources are not being used for production.
3
Political-economic system-all resources are publicly owned & economic decisions are made by central authorities.
Traditional Economy
Communism
Capitalism
Socialism
4
Scarcity
Physical items produced in our economy.
The skills and knowledge of workers
The basic elements from which all goods are produced.
Exists if we desire more of something than we have.
5
How does a retailer determine the price of socks?
Macroeconomics
Microeconomics
6
"We do it the way we've always done it."
Traditional Economy
Market Economy
Command Economy
Mixed Economy
7
Inelastic: gasoline
False
True
8
What are factor payments?
Payments from the government
Payments from household income
Payments for government purchases
Payments for the use of resources
9
Normative Economics: It is the government’s responsibility to help the poor.
True
False
10
Normative economics
What the world is like & why it works the way it does.
The way things should be rather than the way things are.
Created by humans and used to produce goods and services.
The study of economics as whole
11
Making some people better off without making anyone worse off.
Economic Growth
Standard of living
Equity
Efficiency
12
Which of the following is a natural resource?
bicycles
trees
All apply
Sunlight
13
Where do the factors of production sold in the factor markets come from?
Businesses
Firms
Individuals
Households
14
Economic Goals
3
7
1
5
15
Decisions about resources are made by habit, custom, superstition, or religious tradition.
Market
Command
Traditional
Mixed
16
The quality of being fair and just
Economic Freedom
Equity
Efficiency
Economic Growth
17
Which of the following is a factor of production?
Capital resources
Entrepreneurship
Human resources
All apply
18
Not coming late to 1st period so that you don't receive an automatic lunch detention
Incentive
command economy
Rationing
Scarcity
19
An economic system under which most resources are publicly owned and economic decisions are made by groups of workers
Communism
Socialism
Free-Enterprise System
Capitalism
20
How does the opportunity cost of Good R change as good S increases?
It decreases.
It is constant.
It is zero.
It increases.
21
Complements: Ford and Chevy
True
False
22
If the price of printers goes down, what happens in the market for ink cartridges?
Demand Quantity decreases
Demand increases
Demand decreases
Demand Quantity increases
23
He believed that in the market system-everyone makes decisions that are best for themselves.
Adam Levine
Thomas Jefferson
Adam Smith
Voltaire
24
"We choose how to produce it."
Mixed Economy
Market Economy
Traditional Economy
Command Economy
25
Substitutes: IPhone and Galaxy
True
False
26
Opportunity Cost
Activities produced in an economy.
The basic elements from which all goods are produced.
Physical produced in our economy.
The value of the next-best alternative.
27
A property right is a legal claim of ownership.
True
False
28
In a command economy what goal is usually sacrificed?
Efficiency
Economic Freedom
Economic Growth
Economic Security
29
Inelastic: lamb chops
False
True
30
There is a high degree of economic security due to government planning.
Market
Command
Traditional
Mixed
31
What point is unattainable?
Point B
Point A
Point C
Point D
32
Equality of opportunity: every person should share equally in what the economy produces.
True
False
33
An entrepreneur is a(n)
Risk-taker
inventor
computer expert
Teacher
34
Elastic: new cars
True
False
35
How does the national debt impact employment?
Macroeconomics
Microeconomics
36
The prospect of a reward or punishment that influences a decision or motivates effort.
Trade-off
Opportunity cost
Incentive
Resources
37
Decisions made by individuals about what to do and what not to do
Scarcity
Individual choice
38
This is where goods and services are exchanged for money.
market
firm
household
product market
39
The inflation rate was 3% last year.
Positive economics
Normative economics
40
Central planners make the important decisions about what, how, and for whom to produce.
Command economy
Mixed economy
Traditional economy
Market economy
41
The study of choice under conditions of scarcity.
Economics
Macroeconomics
Economy
Microeconomics
42
What is not a way that households participate in a market economy?
Households provide land, labor, capital, and entrepreneurship
None apply.
Households buy goods and services from firms.
Households purchase goods and services from businesses.
43
How does trade with Europe affect the United States economy?
Macroeconomics
Microeconomics
44
Change comes slowly, often with opposition.
Command
Mixed
Market
Traditional
45
Demand is the amount of a good or service that consumers are willing to buy
True
False
46
Examples of natural resources include all except:
Farmland
Dams
Rain
Rivers
47
Law of Demand
consumers will buy more of something when price goes down
consumers will buy more of something when price goes up
consumers will buy less of something when price goes down
consumers will not refuse to buy something when price goes down
48
"We produce what we are told."
Market Economy
Command Economy
Traditional Economy
Mixed Economy
49
Karl Marx wrote the Communist Manifesto.
True
False
50
Land, Labor, Capital, Entrepreneur
Resources
Services
Needs
Tradeoff
51
The price of elasticity of demand measures how much of what?
the demand responds to a change in price
quantity demanded responds to a change in price
quantity demanded responds to a change in demand
quantity demanded does not take measure of anything
52
What is this?
Venn Diagram
Pie Graph
Circular Flow Diagram
PPF
53
Who produces in a circular flow diagram?
No production takes place in a Circular Flow Diagram.
Households
Firms
Consumers
54
If the price of a good or service increases what will happen to the demand for it?
Increase
Decrease
Not change
55
Expenditures for which the government receives no good, service, or resource in return.
opportunity cost
transfer payment
property right
public good
56
Complements: Milk and Cookies
False
True
57
If the price of a good or service decreases what will happen to the demand for it?
decrease
increase
not change
58
Microeconomics
Study of how people make decisions and how those decisions affect other
Created by humans and used to produce goods and services.
A collection of buyers and sellers, wherever they may be.
An increase in the ability to produce goods and services over time.
59
What happens when you give up something to get something else.
Tradeoff
Scarcity
Capital
Wants
60
What is NOT a need?
Electricty
Water
Shelter
Food
61
Which point is inefficient on the PPF?
Point C
Point D
Point E
Point B
62
What is economic growth?
Something used to understand and predict economic activity.
The opportunity cost of a good to rises as more of the good is produced.
A simplified representation of reality
An increase in the ability to produce goods and services over time.
63
Substitutes: PS4 and Xbox
False
True
64
Positive economics
The study of the economy as a whole.
The study of the way things should be rather than the way things are.
A simplified representation of reality.
The study of what the world is like & why it works the way it does.
65
What does this graph represent?
Venn Diagram
Demand
Circular Flow Matrix
66
Incentives are controlled by the gains of trade.
Market
Command
Mixed
Traditional
67
A good or service that can be consumed by many people at once and that other people can't be prevented from using.
property right
public good
Transfer payment
allocation
68
Macroeconomics-Should the minimum wage be increased?
True
False
69
This is where resources are exchanged for money.
Transfer payment
product markets
Factor Market
Factor payment
70
For an inferior good, an increase in consumer income will cause:
The demand curve to shift right
The demand curve to shift left
The supply curve to shift right
The supply curve to shift left
71
Complements: Mash potatoes and gravy
True
False
72
This displays what?
Economic Growth
Economic Security
Equity
Efficiency
73
Which of the following concepts can be modeled using a PPC/PPF?
Governments are more efficient allocators of resources.
Prices that the goods will sell for will be determined in a market
Societies have preferences about what should be produced.
Making more of 1 good means making less of another good.
