Unit 1 Test Flashcards
Which is not a feature common to all games?
winners
Economics is about allocating resources to produce and distribute which of the following?
goods and services
Which is an example of an allocation decision?
Coal is set aside to burn as heating fuel.
An assembly line is used to build cars.
A hub-and-spoke network is used to ship packages.
A telephone factory is converted to make computers.
Coal is set aside to burn as heating fuel.
Which describes an efficient outcome?
A government program allocates food to the needy.
A car is designed to waste as little fuel as possible.
Consumers are given the widest range of choice possible.
A company sets up retirement program for its employees.
A car is designed to waste as little fuel as possible.
Which is not an economic goal?
freedom
security
growth
victory
victory
Which best explains why players in the game of economics are often in conflict with each other?
Some economic goals are incompatible with each other.
Efficient outcomes require free choices.
Supply and demand are usually not balanced.
Producers need consumers more than consumers need producers.
Some economic goals are incompatible with each other.
Which question must be asked about the use of resources in an economic system?
What allocation of resources will provide the fastest growth?
What is the most effective allocation of resources?
What is the most secure allocation of resources?
What is the fairest allocation of resources?
What is the most effective allocation of resources?
Which best explains why the game of economics cannot eliminate scarcity?
Human intellectual capacities are too limited to allow them to make rational allocation decisions.
Technology has not advanced far enough to create fully efficient systems of production and distribution.
The population of the Earth has grown too large to be sustained by the available natural resources.
No matter how much supply is produced, people’s demands will always increase to exceed supply.
No matter how much supply is produced, people’s demands will always increase to exceed supply.
A capitalist country has which economic system?
free-market
command
planned
socialist
free-market
Which best demonstrates the way consumers and producers influence each other in the free-market system?
flow chart
circular-flow model
assembly line
downward spiral
circular-flow model
Which best explains why the government makes and enforces laws in a free-market system?
Workers pressure the government to guarantee minimum wages.
The government needs to plan efficient outcomes.
Laws against theft, fraud, and coercion are needed to protect free choice.
Competition among producers by itself cannot ensure a wide range of consumer choices.
Laws against theft, fraud, and coercion are needed to protect free choice.
Which is an economic system run by the government?
a planned economy
a mixed economy
a free-market economy
a black-market economy
a planned economy
Which does the government do in a socialist country?
set prices for goods and services
ensure free choice for consumers
guarantee property rights
protect the profit motive
set prices for goods and services
Cost-benefit analysis is a process that involves which of the following?
calculating a budget for each expense
maximizing benefits and minimizing costs
accurately predicting the effects of every decision
determining the profit that results from production decisions
maximizing benefits and minimizing costs
Which results from the fact that costs and benefits are based on personal preferences?
Different types of information lead to the same decision.
Monetary factors are more important than nonmonetary factors.
Both monetary and nonmonetary factors are taken into account.
The benefits will always be greater than the costs.
Both monetary and nonmonetary factors are taken into account.
