Lesson 2 Quiz Test Questions – Flashcards
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Marxist economics led to the creation of a communist state in ____________ .
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Russia
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The evolution toward the Market system occurred in a gradual process as societies adapted to new __________ and the need for skilled labor.
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technologies
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__________ efficiency is gaining the most output to maximize consumer utility with a given amount of input.
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Economic
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In the Circular Flow example, the amount of Revenue that is flowing into the Business sector is __________ .
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$5000
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What is the opportunity cost of moving from B to C ?
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4 Computers
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The process of production is determined by the factors of production which are ____________ used for creating output.
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All of the above
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What is the benefit of moving from A to B ?
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4 units of clothing
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In the graph above, the point D represents values resulting in ____________.
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unemployment
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In the Circular Flow example ... if all of the units produced are "fast food cheeseburgers", then the cheeseburger itself ___________
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is a "good" (as opposed to the "service" being "fast" ... or not)
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In the Circular Flow example, some Households have Labor (and possibly other) resources which are ______________ and, therefore, they receive fewer Goods and Services in a Market based economy.
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both b. and c.
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In the Circular Flow example, Business are choosing to employ __________ people from the Factor Market.
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120
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Thomas Malthus predicted that economic activity would evolve in cycles of ___________________ .
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Misery and catastrophe
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The ability of people to produce is determined by their ____________________ .
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All of the above.
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The ability of people to conceive an idea (innovate), bring together resources, and take the risk when starting a business are all part of ________________ .
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Entrepreneurship
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A shift in a PPC/PPF to the right (or outward) illustrates ________ which may be generated by better utilizing existing resources (improved Technology) or by acquiring more resources over time.
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Growth
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The _____________________ assumes that a nation has only two goods and they are graphed with varying combinations along the X and Y axis.
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Production Possibilities Curve (also know as the PPF)
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In America during the early 1900's ________________ became an economic force as the role of workers became fundamental for economic growth.
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Labor Unions
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What is the opportunity cost of moving from B back to A ?
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4 Units of Clothing
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`Under-employment is when a resource is not fully utilized, such as when _____________________________________________.
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c. or d. below
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In Adam Smith's writing, the question of "What to produce?" was answered by _________________ in which the demand choices by consumers directed the supply decisions of producers.
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consumer sovereignty
