question

Goods and Services are scarce becauser resources used to produce them are scarce

answer

True

question

Capital includes both human capital and business capital

answer

False

question

Shortages are constant

answer

False

question

Services are physical objects someone produces

answer

False

question

Entrepreneurs dont always take risks

answer

False

question

Because scarcity exists, people must choose between alternatives

answer

True

question

People face identical opportunity costs when making decisions

answer

False

question

Opportunity costs are roughly the same for everyone who attends college

answer

False

question

Trade-offs are another way of tallking about opportunity costs

answer

True

question

The world's supply of resources is unlimited

answer

False

question

A change in opportunity costs would probably change a persons behavior

answer

True

question

Wealthy people like Bill Gates and Steve Jobs don't have to deal with scarcity

answer

False

question

Scarcity can be explained by saying, "we cant have everything we want."

answer

True

question

Individuals face trade-offs but societies do not

answer

False

question

The production possibilities frontier (PPF) illustrates the concept of scarcity

answer

True

question

The area consisting of points on the PPF and below it represents what is unavailable to us

answer

False

question

According to economists, people will do a particular activity only if the benefits are greater than the costs

answer

True

question

One of the trade-offs of driving our cars is additional pollution

answer

True

question

Resources satisfy wants

answer

True

question

The resources used to make all goods and services are called factors of production

answer

True

question

The principal (Ms. McLaughlin) is considered and entrepreneur

answer

False

question

Capital refers only to money

answer

False

question

Economics is the study of choices

answer

True

question

Someones wants are essential for survival

answer

False

question

Goods are physical objects that someone produces

answer

True

question

Entrepreneurs assume all the risk for the production of a good or service

answer

True

question

Shortages are the same as scarcity

answer

False

question

Shortages are man-made

answer

True

question

Scarcity exists because resources are limited and wants are unlimited

answer

True

question

One benefit of having capital is having more knowledge

answer

True

question

Standard of living is the level of economic prosperity

answer

True

question

A market is any arrangement that allows buyers and sellers to exchange things

answer

True

question

Self-interest is a business's corporate gain

answer

False

question

The invisible hand is a term coined by John Adams

answer

False - Adam Smith

question

Centrally planned economies and comand economy define the same economic system

answer

True

question

Government makes key decisions in a centrally planned economy

answer

True

question

Consumer soverignty is the power of governments to deicde what gets produced

answer

False

question

In the 1800s socialism gave rise to communism

answer

True

question

Authoritarian governments limit individual freedoms and require strict obedience from their citizens

answer

True

question

Free market exists only in the United States

answer

False

question

Incentives can be either positive of negative and influence people's behavior

answer

True

question

An economic system is defined by how a society answers three economic questions

answer

True

question

An economic system that is based on customs, skills, and cultural beliefs is Traditional

answer

True

question

Adam Sandler wrote The Wealth of Nations and believed that self-interest causes people to work hard and take risks, which benefit society

answer

False

question

The question of what goods to produce must be answered because scarcity dosent't exist

answer

False

question

The three ecnomic questions are: What goods will be produced? How much will the goods cost? For whom will the goods be produced?

answer

False 1. What goods and services will be produced? 2. Who will consume the goods and services? 3. How will the goods and services be produced?

question

In a free market economy, the government frequently gets involved

answer

False

question

All nations must decided how to answer the three economic questions about the production and distribustion of goods

answer

True

question

Adam Smith believed that the "Invisible Hand" would regulate the economy

answer

True

question

Economic freedom is one goal accomplished by a free market economy

answer

True

question

The doctrine of Laisezz-faire states that the government should not intervene in the market place

answer

True

question

Competition leads to lower prices and lower quality

answer

False

question

Incentives can be rewards or punishments

answer

True

question

Traditional economies do not experience significant economic growth

answer

True

question

Communism succeeds in obtaining all of the economic goals

answer

False

question

Karl Marx belived that the working class was treated fairly

answer

False

question

Today, in North Korea, the government owns almost all the resources in the country

answer

True

question

In a free market, the government frequently gets invloved

answer

False

question

Most modern economies are mixed economies

answer

True

question

Mixed economies are not very successful

answer

False

question

Public interest is the concerns of the society as whole

answer

True

question

Public disclosure laws require companies to provide information about their products or services

answer

True

question

A referendum is a proposed law submitted to congress

answer

False

question

The basic facilities that are necessary for a society to function and grow is infrastructure

answer

True

question

Public goods are financed by the private sector

answer

False

question

The Public sector is the part of the economy that involves the transactions of individuals and businesses

answer

False

question

Work ethic is the commitment to the value of work

answer

True

question

A patent is a government license that grants an author exclusive rights to publish and sell creative works

answer

False

question

With open opportunity, econmic mobility can go up or down

answer

True

question

Legal equality can benefit the economy by maximizing a country's use of human capital

answer

True

question

With private property rights, personal owndership provides an incentive for property owners to use their property wisely and conserve their resources

answer

true

question

Voluntary exchange encourages competition

answer

True

question

The government places limits on the freedom of businesses to protect congress

answer

False

question

Business cycles are tracked by individual businesses

answer

False

question

The GDP stands for Gross Domestic Product

answer

True

question

Building a building through "bootstrapping" requires no work ethic

answer

False

question

Improved technology can sometimes not be a help for the economy

answer

False

question

Infrastructure shows the basic facilities that are necessary for a society to function and grow

answer

True

question

Patent and copyrights are the same thing

answer

False

question

A market failure suggests that the free enterprise system does not work

answer

False

question

The government tries to encourage positive externalities and limit negative externalities

answer

True

question

Demand curves do not include straight lines

answer

True

question

Demand schedules and demand curves contain the same information presented in different ways

answer

True

question

Buyers have demand for a good or service whenever they have enough money to purchase the item

answer

False

question

A demand schedule lists only prices

answer

False

question

If the demand for chocolate increases, the demand curve shifts to the left

answer

False

question

Price is the only factor that causes a change in quantity demanded

answer

True

question

Popcorn and butter would be classified as complimentary goods

answer

True

question

A shift of the curve means that the curve moves only left or right

answer

True

question

If movie prices increase by 30 percent and attendance (quantity of tickets demanded) drops by 40 percent, demand is considered inelastic

answer

False

question

Time is one of the factors that determine elasticity of demand

answer

True

question

Buyers are more responsive to price changes for goods in which they spend a larger percentage of their income

answer

True

question

If demand is inelastic and price decreases, total revenue will decrease

answer

True

question

Elasticity of demand deals with the relationship between price and quanitity demanded

answer

True

question

If demand for DVD players decreases, the demand curve shifts to the left

answer

True

question

Price has no impact on how much consumers will buy

answer

False

question

One of the most important factors in determing wherether or not the demand for a product is elastic or inelastic is whether or not substitutes for it exist

answer

True

question

Chocolate bars, tropical vacations and automobiles are all elastic goods

answer

True

question

If a good has many substitutes, it can be considered inelastic

answer

False

question

Demand curves slope upward from left to right

answer

False

question

As income rises, demand for normal goods rises

answer

True

question

If a seller increases the price of a good, it will always bring about an increase in total revenue

answer

False

question

Elasticity of demand is important to economists only; business owners dont need to understand advanced economic concepts like elasticity

answer

False

question

Quantity demand is determined by price

answer

True

question

Pepsi and Coke can be considered substitutes

answer

True

question

Inelastic demand is usually associated with demand for luxuries

answer

False

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