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Basics of Economics Review
Basics of Economics Review
30 terms
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A review quiz of the Basics of Economics unit.
Flashcards
30 cards
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Practice quiz
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Host live
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Questions
30
Answers
1
What do traditional economies use instead of money?
Bones
They barter
Nothing, things are freely given and taken
Berries and nuts
2
Which of these is
NOT
one of the three economic questions every country must answer?
What goods and services will be produced?
How will goods be distributed to customers?
Who is responsible for producing them?
Where will our goods end up after they are used?
3
Activities done for consumers.
Profit
Needs
Goods
Services
4
Where does the supply come from in a market economy?
Consumers make the supply of goods.
A friendly wizard makes the supply of goods.
The government makes the supply of goods.
Producers make the supply of goods.
5
Money earned when you sell something for more than it cost.
Profit
Labor
Income
Wants
6
Exchanging goods or services for other goods or services.
Barter
Profit
Labor
Income
7
Where does the demand originate from in a market economy?
The government makes the supply of goods.
Producers making way too many of a product creates demand.
Bill Gates buying up the farmland and BlackRock buying up the houses
Consumers liking & buying things creates demand for those products.
8
Who or what makes the economic decisions in a command economy?
Consumers and producers make these decisions
The free market, limited by legal restrictions, makes these decisions
The central government makes these decisions
These decisions are based on family customs and culture
9
Who or what makes the economic decisions in a traditional economy?
These decisions are based on family customs and culture
The central government makes these decisions
Consumers and producers make these decisions
The free market, limited by legal restrictions, makes these decisions
10
A user of goods and services.
Producer
Consumer
Needs
Wants
11
What did early hunter-gatherers do with their goods when they encountered another tribe?
They fought over the most expensive goods
Hunter-gatherers did not carry goods with them
They bartered for other goods
They exchanged them for money
12
What is cryptocurrency?
It's like a... well... a dollar that isn't a dollar, you know?
Digital money only valuable to one company, like Disney Bucks.
A rare form of metal coin that is worth a lot.
Digital money not backed by a government or company.
13
The amount of physical, mental, and social effort used to produce goods and services in an economy.
Labor
Wants
Goods
Consumer
14
Items bought by consumers you can actually touch.
Needs
Profit
Services
Goods
15
Money coming into your budget. This may be from money earned from working.
Income
Consumer
Profit
Labor
16
Which of these is
NOT
an area with traditional economies today?
Latin America
The Middle East
Southern Europe
Africa
17
Which of these was
NOT
one of the earliest forms of money?
Beads
Coins
Teeth
Shells
18
What were early coins made of?
Precious gems
Tin
Precious metals
Volcanic glass
19
Goods and services which consumers need to survive.
Income
Profit
Needs
Wants
20
How does a market economy make decisions about what to produce?
The government tells producers what to make.
Producers guess and hope they are making what people will buy.
The laws of supply and demand direct production.
Consumers sign petitions telling producers what to make.
21
Where did market economies evolve from?
They evolve from traditional economies
They evolve from mixed economies
They are spontaneous, no evolution happens
They evolve from command economies
22
Who or what makes the decisions in a market economy?
The free market, limited by legal restrictions, makes these decisions
The central government makes these decisions
Consumers and producers make these decisions
These decisions are based on family customs and culture
23
What encourages countries to move toward a mixed version of the economy?
Mixed economies are beneficial for everyone involved
Mixed economies help to regulate markets and protect against abuse
Mixed economies have the strengths but no weaknesses of the other three
Mixed economies help make government officials gain power
24
Why does a command economy end up with shortages?
They focus on producing too many different goods
The government hordes goods and only releases them in small batches
Fixed prices are too low and industry only focuses on certain goods
Government price fixing sets the price too high
25
Which of these is
NOT
one the four stages of the flow of money?
A good or service is provided
A good or service is taken without payment
Income is received
Income is spent
26
Why is using money better than bartering?
Using money is not better than bartering
Money cannot be traded for certain goods, so it is more valuable
It's easier to carry and can be traded for practically any good or service.
Money is harder to steal than goods
27
Goods or services which consumers can live without but would like to have.
Income
Needs
Wants
Profit
28
Why are innovations often discouraged in a command economy?
Command economies reward innovation, just not very well
The government punishes people who improve their systems
Workers have no incentive to innovate and are rewarded for following orders
Government leaders don't like change
29
What economic principle is the basis for our current global economy?
The Free Market
Jainism
Globalism
Communism
30
Why do countries need to have an economic system?
To decide how resources are made and distributed
To manage the accounts of all of its citizens
They don't
To print as much money as they need
