Apex Economics Unit 1 – Flashcards
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Which of the following actions best meets the goal of security? Taking good notes in class Wearing a seatbelt while riding in a car Making extra snacks for a party Bringing an umbrella to a baseball game
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Wearing a seatbelt while riding in a car
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In the game of economics, ________ are actions that other people value
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services
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Which of the following are features common to all games? Scores Players Outcomes Rules Properties Winners Teams
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Players Outcomes Rules Properties
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Which of the following best describes what capital contributes to production? Resources taken from the Earth to supply production Human effort and ideas that drive production Energy from the environment to fuel production Resources created by humans to aid production
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Resources created by humans to aid production
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Which of these activities is most essential to the game of economics? The use of of recyclable materials The reduction of waste products The production of goods and services The development of new products
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The production of goods and services
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Which of the following best explains why the game of economics does not have a single goal? Some economic goals are not compatible with each other Most people do not know what economics is about Economics ia game without winners or losers Different people want different things out of life
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Different people want different things out of life
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Which of the following is not considered a game? Pin the Tail on the Donkey Cleaning your room Trivial Pursuit Hide and seek
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Cleaning your room
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Which of the following best explains what makes allocation decisions necessary? Consumers usually disagree with each other about which brands are the best People cannot agree on what kind of allocation will be the most efficient There are never enough goods and services to satisfy all wants and needs There are often different methods of producing the same goods and services
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There are never enough goods and services to satisfy all wants and needs
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Which of the following does not need to be addressed when organizing an economy? The organization of production The distribution of goods and services The rules of political institutions The allocation of resources
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The rules of political institutions
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Which of the following best describes a player's role in any game? The actions expected of him or her The number of turns he or she gets to take The way he or she scores points The name of his or her character
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The actions expected of him or her
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The government does which of the following in a planned economy? Protects freedom of choice Maximizes efficiency Runs the economic system Guarantees equality
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Runs the economic system
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Which of the following best explains how free choice is protected in a free-market system? Conflict and competition among producers automatically lead to free choice for consumers Consumers and producers protect their own freedom by making economic decisions Working pressure producers to provide them with high enough wages to make free choices The government makes and enforces whatever laws are needed to guarantee free choice
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The government makes and enforces whatever laws are needed to guarantee free choice
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Which of the following best explains why property rights are necessary in a free-market system? Property rights allow consumers and producers to make free choices Competition cannot exist if some own property and others do not The government cannot plan an efficient economy without passing laws Market forces only work when everyone owns some property
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Property rights allow consumers and producers to make free choices
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In a command economy, who tells producers what and how much to produce? Economists Consumers Workers Government planners
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Government planners
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Which king of economic system does a socialist country have? Planned Distributive Free-market Mixed
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Planned
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Which of the following best explains why the profit motive often leads to efficiency and innovation? Profit gives producers more money to be able to buy better resources Consumers want to reduce waste in order to spend less on what they buy The competition to make profit drives producers to eliminate waste Losing money prevents producers from hiring the most efficient workers
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The competition to make profit drives producers to eliminate waste
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Match the following economic systems with their definitions Free-market economy - An economic system run by the government Planned economy - An economic system where decisions are made by producers and consumers Mixed economy - An economic system that use both free-market and command principles
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Free-market economy = An economic system where decisions are made by producers and consumers Planned economy = An economic system run by the government Mixed economy = An economic system that use both free-market and command principles
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According to the circular flow model, which of the following do producers provide to consumers? Wages Labor Capital Resources
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Wages
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Which of the following best explains how a free-market system has a circular flow of influences? Consumer decisions affect producers, and producer decisions affect consumers The allocation choices is made by the government occur in natural cycles In order to be efficient, producers recycle resources back to nature Wages flow in a circular way back and forth between consumers and producers
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Consumer decisions affect producers, and producer decisions affect consumers
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What is the role of consumers and producers in a free-market system? They do what government planners tell them They provide goods and services to workers They make the economic decisions They allocate resources for production
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They make the economic decisions
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Which economic indicator would be most useful for figuring out how much something you bought today cost ten years ago? Retail sales New housing construction Gross Domestic Product Consumer Price Index
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Consumer Price Index
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Which of the following would result in an increase in GDP? Balance between imports and exports A rising level of imports Less government spending Greater levels of investment
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Greater levels of investment
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Which of the following helps economists judge the overall condition of a particular country's economy? A description of the main economic activities A listing of government regulations An overview of a country's political system A measurement of economic indicators
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A measurement of economic indicators
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Match the economic indicator with its type of measurement Retail sales - Activity Gross Domestic Product - Growth Consumer Price Index - Inactivity Unemployment rate - Inflation
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Retail sales = Growth Gross Domestic Product = Activity Consumer Price Index = Inflation Unemployment rate = Inactivity
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An _________ calculator can be used to find out how much something that cost $10 in 1980 would cost today
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inflation
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Which of the following economic indicators measures a specific type of economic activity? Gross Domestic Product Inflation Retail sales Unemployment
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Retail sales
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Which of the following best characterizes the factors involved in a cost-benefit analysis? There are both monetary and non-monetary considerations that must be taken into account Individuals consider the benefits to themselves and the costs to others It is more important to calculate costs accurately than to calculate benefits accurately The future matters more than the past when determining which costs and benefits count the most
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There are both monetary and non-monetary considerations that must be taken into account
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Which of the following statements accurately describes how costs and benefits are calculated? Cost-benefit analysis is an attempt to get benefits to exceed costs Money is an important cost but not the only one Calculations of cost and benefit are based on personal preferences Benefits do not always increase as costs increase
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Calculations of cost and benefit are based on personal preferences
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Which of the following is a simple way of describing cost-benefit analysis? Making a decision by listing pros and cons Estimating prices to the nearest dollar Measuring the overall health of an economy Predicting economic decisions without much information
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Making a decision by listing pros and cons
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Which of the following is happening when the GDP is neither rising nor falling? Stagnation Growth Inflation Unemployment
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Stagnation
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Which of the following explains why the internet can help people make better economic decisions? Security measures guard people's private information Information is crucial for making good decisions Purchasing goods and services online is more convenient Faster communication increases the amount of economic activity
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Information is crucial for making good decisions
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Which of the following is a direct benefit of the use of assembly lines in production? Job security is enhanced Wasted motion is eliminated Cheap goods are more rare Prices and demand both fall
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Wasted motion is eliminated
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Technology has which of the following effects on distribution? The shipping of goods speeds up Delivery networks become more complex Internet commerce becomes less popular Packages sizes are standardized
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The shipping of goods speeds up
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Which of the following is the most direct benefit business enjoy as a result of online sales? Online sales have almost completely replaced in-store sales Consumers can shop for the best prices online Online businesses don't need to have as many employees There is more competition among producers
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Online businesses don't need to have as many employees
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When technology advances, which of the following always takes place? Results are improved Inventions are made Devices are designed Efficiency is achieved
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Results are improved
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The information contained on the Internet makes it very much like a giant version of which of the following? A library A shopping mall A factory A department store
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A library
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Which of the following is the most direct effect that the Internet has had on retail sales? The improvement of communication The standardization of distribution The development of e-commerce The wide availability of information
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The development of e-commerce
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Technological advancement can come from improved devices or new _______
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methods
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In the game of economics, producers look to technological improvements to increase which of the following? Consumption Productivity Inventory Wages
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Productivity
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Match the old device with the improved device that does the same job better Fireplace - computer Typewriter - car Horse-drawn carriage - oven Ice-box - refrigerator
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Fireplace = oven Typewriter = computer Horse-drawn carriage = car Ice-box = refrigerator
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Which of the following is measured by the inflation rate? The amount of goods sold to consumers The percentage rise in price levels The overall value of goods and services The growth of housing construction
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The percentage rise in price levels
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Economics is about doing which of the following with resources when it comes to the production and distribution of goods and services? Discovering Reusing Expanding Allocating
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Allocating
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Which of the following is an example of a production decision? Crude oil is set aside to refine into gasoline for cars A gas station is expanded to accommodate more car at once A pipeline is set up to get oil from wells to refineries An assembly line is used to build cars
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An assembly line is used to build cars
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The gross domestic product would increase significantly if which of the following occurred? Consumption doubled Taxes were cut in half Imports doubled Investment were halved
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Consumption doubled
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Which of the following questions must be asked about the use of resources in an economic system? What is the fairest allocation What is the most secure allocation What allocation will provide the fastest growth What is the most effective allocation
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What is the most effective allocation
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Which of the following best explains why some economic goals are incompatible with each other? Individuals must harm each other to get ahead in life People are often in conflict over what they want Producers need consumers more than consumers need producers Both supply and demand cannot be sufficiently allocated
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People are often in conflict over what they want
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Which of the following is not an economic goal? Victory Security Freedom Growth
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Victory
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Which of the following properties of economics results from the fact that people will always want more no matter how much is produced? Supply and demand will eventually be in balance with each other Buying low and selling high is always possible There is scarcity that cannot be eliminated Voluntary exchanges will always lead to a fair price
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There is scarcity that cannot be eliminated
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A mixed economy is a combination of which of the following economic systems? Communism and socialism Capitalism and anarchism Planned and command Free-market and command
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Free-market and command
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Technological improvements lead to which of the following? Increased productivity Increased distribution Increased security Increased allocation
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Increased productivity
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Because the choices of consumers influence producers and the choices of producers also influence consumers, the free-market system has which of the following? A built-in process of growth A tendency toward equality Only two kinds of players A circular flow of influences
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A circular flow of influences
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Match the descriptions of different economic systems with their correct name An economic system run by the government -mixed economy An economic system that uses both free-market and command principles - planned economy An economic system where decisions are made by the producers and consumers - free-market economy
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An economic system run by the government = planned economy An economic system that uses both free-market and command principles = mixed economy An economic system where decisions are made by the producers and consumers = free-market economy
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Which economic indicator can show whether a country's economy is growing or stagnating? Corporate profit level Gross Domestic Product Inflation Rate Unemployment Rate
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Gross Domestic Product
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Cost-benefit analysis is similar to which of the following? Using economic indicators to measure economic health Making decisions with a limited amount of information Making a decision by listing pros and cons Estimating prices to the nearest dollar
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Making a decision by listing pros and cons
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Which of the following best describes the kind of decisions that result from using cost-benefit analysis? An outcome that is rational if only monetary costs and benefits are included A maximum amount of profit for both producers and consumers An outcome with benefits that are greater than the costs A high sale price for producers and low buying price for consumers
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An outcome with benefits that are greater than the costs
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The Internet helps consumers make well-informed decisions because which of the following? E-commerce makes it more convenient to purchase goods It speeds up the pace of both production and consumption Private financial information can be handled more securely It provides the information that is crucial for making good decisions
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It provides the information that is crucial for making good decisions
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Which of the following does the government do in a socialist country? Ensure free choice for consumers Guarantee property rights Protect the profit motive Set prices for goods and services
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Set prices for goods and services
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Which of the following is not a feature common to all games? Rules Teams Properties Players
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Teams
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Which of the following is one of the benefits of e-commerce brings to consumers? Shipping gifts is easy Credit debt is more common There are fewer stores to go to Internet advertising is effective
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Shipping gifts is easy
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The two forms of technology are better devices and improved _______
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methods
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Match the more powerful device with the older device that it replace Microwave - telegram Telephone - VCR DVD player - stove
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Microwave = stove Telephone = telegram DVD player = VCR
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Which of the following best explains why the government makes and enforces laws in a free-market system? Competition among producers by itself cannot ensure a wide range of consumer choices The government needs to plan efficient outcomes Workers pressure the government to guarantee minimum wages Laws against theft, fraud, and coercion are needed to protect free choice
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Laws against theft, fraud, and coercion are needed to protect free choice
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Calculations of cost and benefit are always which of the following? Minimum Rational Resourceful Subjective
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Subjective
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Which of the following describes a situation where the goal of growth is being pursued? The government establishes a retirement program for its citizens A company opens a new factory and employs more workers Consumers reduce the amount of materials they recycle A factory lays off workers to become more efficient
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A company opens a new factory and employs more workers
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E-commerce is an online form of which of the following? Retail sales Communication Gambling Production
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Retail sales
