Econ Test 1 List – Flashcards
40 test answers
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Which of the following best describes what economic indicators do?
answer
They show the condition of a country's economy.
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Which of the following outcomes meets the economic goal of growth?
answer
A factory increases its number of employees.
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Which of the following best explains why there are several different economic goals?
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Different people want to pursue different goals in life.
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In a free-market system, who makes the main economic decisions?
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Consumers and producers
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Which of the following would lead to a rise in GDP?
answer
Greater investment
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A mixed economy combines free-market principles with which of the following?
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* Cost-benefit analysis, government planning, or supply and demand
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Which of the following describes the properties that determine the outcomes in a free-market system?
answer
Market Forces
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Which of the following are non-monetary factors that people may consider when doing cost benefit analysis?
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Time and sacrifice
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Technology can most broadly be defined as anything that does which of the following?
answer
Improves results
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Which of the following does the U.S. government use to measure inflation?
answer
The consumer price index
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What is another term for capitalism?
answer
The free-market system
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Which of the following best explains what the role of the players in a game is?
answer
The things players are expected to do.
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Which of the following methods increases productivity by reducing the wasted motion of workers?
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The assembly line
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In the game of economics, ___________ are objects that fulfill people's needs and wants.
answer
goods
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Which of the following does the government do in a socialist society?
answer
Sets prices for goods and services
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Which of the following describes a situation where the goal of efficiency is being met?
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When a good is produced with few wasted resources.
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Which of the following describes one way that the Internet benefits consumers?
answer
Product info is easy to access.
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Which of the following best explains why the government needs to pass laws against theft, coercion, and fraud in a free-market society?
answer
To protect freedom of choice
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Which of the following best explains why scarcity cannot be eliminated from the game of economics?
answer
People will always have demands that exceed the available supply.
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A. Inflation rate B. Gross Domestic Product C. Unemployment rate
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Prices Values of goods and services Workers without a job
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Which of the following activities fits the definition of a game?
answer
Playing tag
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Which of the following are features of all games?
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Outcomes, properties, rules, players
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Which of the following does not always take place in the game of economics?
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* Allocation decisions or An increase in prices
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Which of the following best defines capital?
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* Human effort or Man-made productive resources
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Which of the following best describes the process of maximizing benefits and minimizing costs?
answer
Cost-benefit analysis
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Which of the following is an example of an allocation decision?
answer
Coal is set aside to burn as heating fuel.
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Which of the following is not an economic goal?
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Victory
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Which of the following cannot be done by the government in a command economy?
answer
Deciding what goods consumers buy.
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Economics is about allocating resources to produce and distribute which of the following?
answer
Goods and services
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Which of the following government actions is necessary to guarantee the conditions required for a free-market system?
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Laws against theft, fraud, and coercion
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Players responsible for the important economic decisions in a mixed economy
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Government planners
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Players responsible for the important economic decisions in a command economy
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Consumers and producers
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Players responsible for the important economic decisions in a free-market system
answer
Government officials and individual citizens
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Calculations of cost and benefit are always which of the following?
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Subjective
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Which of the following describes an efficient outcome?
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A car is designed to waste as little fuel as possible.
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The assembly line is an example of a way that technology is improved by new ___________.
answer
Method
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