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.
Calculations of cost and benefit are always which of the following?
subjective
minimum
rational
resourceful
subjective
When the gross domestic product is neither growing nor shrinking, a country’s economy is doing which of the following?
inflating
producing
stagnating
expanding
stagnating
Which economic indicator would be most useful for figuring out how many goods are being sold to consumers?
Consumer Price Index
retail sales
new housing construction
gross domestic product
retail sales
The gross domestic product goes down when which occurs?
Imports increase faster than exports.
Consumers spend more on luxury goods.
There are too many unemployed workers.
The government spends more than it takes in.
Imports increase faster than exports.
Which technological improvement did the assembly line bring?
greater productivity
improved communication
reduction of human workload
faster transportation
greater productivity
Which does not demonstrate the progression of important human technology?
from fire pit to fireplace to oven
from feather pen to typewriter to computer
from railroad to horse-drawn carriage to automobile
from telegraph to telephone to cell phone
from railroad to horse-drawn carriage to automobile
Technological improvements lead to an increase in which of the following?
allocation
productivity
distribution
security
productivity
Which best defines e-commerce?
Internet advertising
buying and selling online
electronic production
e-mail communication
buying and selling online
Which is one of the advantages consumers enjoy because of e-commerce?
The Internet makes it easy to compare prices.
High-demand items sell out quickly.
There are fewer physical stores around.
Specialty products aren’t widely available.
The Internet makes it easy to compare prices.
Which can people do through the Internet to make better economic decisions?
avoid the information overload that makes it harder to choose one thing over another
retrieve information quickly so that instant gratification is more possible
get the information that is necessary for making good choices
find out whether or not certain products involve both monetary and nonmonetary costs
get the information that is necessary for making good choices
