Lesson 2

_____________ predicted that economic activity would evolve in cycles of misery and catastrophe.
– Adam Smith
– Karl Marx
– David Ricardo
– Thomas Malthus
Thomas Malthus
Workers formed ___________ and eventually these were recognized as a legal entity having the right of collective bargaining
– Guilds
– Chain gangs
– Unions
– Websites
Unions
The transition away from ___________________ systems began as the manor life yielded to the city life in the 17th and 18th centuries in Europe.
– Fantasy and Utopian
– Market and Autocratic
– Command and Market
– Traditional and Autocratic
Traditional and Autocratic
What is the opportunity cost of moving from A to B ?
– 3 units of clothing
– 9 units of clothing
– 3 computers
– 4 computers
3 computers
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.
The revised sequence
Consumer sovereignty
The system of tradition
The system of command
Consumer sovereignty
All production involves the human resource called___________.
– Capital
– Land
– Entrepreneurship
– Labor
Labor
What is the opportunity cost of moving from B back to A ?
2 units of clothing
4 units of clothing
9 computers
6 computers
4 units of clothing
__________ efficiency is gaining the most output to maximize consumer utility with a given amount of input.
– Productive
– Industrial
– Economic
– Human
Economic
In the graph above, the point D represents values resulting in ____________.
– Inflation
– Efficiency
– Unemployment
– Growth
Unemployment
Karl Marx argued that ___________ would lead to socialism and then to communism as armies of unemployed workers would force economic change.
– Capitalism
– Fascism
– Democracy
– Totalitarianism
Capitalism
In the Circular Flow example, Business are choosing to employ __________ people from the Factor Market.
– All
– 120
– 125
– None of the
120
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.
– Fully employed
– Under-employed
– Un-employed
– Both b. and c.
Both b. and c.
What is the opportunity cost of moving from B to C ?
– 3 units of clothing
– 9 units of clothing
– 2 computers
– 4 computers
4 computers
The process of production is determined by the factors of production which are ____________ used for creating output.
– Labor and land
– Capital and entrepreneurship
– Land and capital
– All of the above
All of the above
In the Circular Flow example, the amount of Revenue that is flowing into the Business sector is __________ .
– $5000
– $2500
– $120
– $125
$5000
Entrepreneurs are well compensated in a market economy if they provide high ________ to consumers at a relatively low cost.
– Profit
– Interest
– Rent
– Utility
Utility
In the Circular Flow example, _____________ units of Services and Goods are being produced by the Business sector.
– 2500
– 5000
– 125
– No
2500
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.
– Inflation
– Recession
– Depression
– Growth
Growth
Under-employment is when a resource is not fully utilized, such as when __________.
– Your Economics professor cannot find even a street sweeping job
– C. or d. below
– An office building stands 80% empty
– A computer network runs at only 50% of capacity
C. or d. below
__________ of concepts is one important means of understanding Economics.
– Digitizing
– Nono-engineering
– Visualization
– Mastication
Visualization
In the Circular Flow example, the amount of Spending that is flowing out of the Household sector is __________.
– $120
– $125
– $2500
– $5000
$5000
What is the benefit of moving from A to B ?
– 4 units of clothing
– 6 units of clothing
– 6 computers
– 4 computers
4 units of clothing
The evolution toward the ________________ system occurred in a gradual process as societies adapted to new technologies and the need for skilled labor.
– Market
– Utopian
– Fantasy
– Euro-centric
Market
In the Circular Flow example, the Consumption Goods will be divided up among the Households according to their income in a __________ based economy.
– Tradition
– Autocratic (or Authoritarian)
– Market
– Command
Market
In the Circular Flow example, ________ individuals from the Households are choosing to try to sell their time and talent in the Factor Market.
– All
– 120
– 125
– None of the above
125
In America during the early 1900’s Labor Unions became an economic force as the role of workers became fundamental for economic ___________.
– Growth
– Inflation
– Recession
– Deflation
Growth
Thomas Malthus predicted that economic activity would evolve in cycles of __________ .
– Inflation and deflation
– Misery and catastrophe
– Global warming and ice ages
– Natural sunspots
Misery and catastrophe
The Standard of Living of a nation is determined by the __________ available and how they are used.
– Quarks or quirks
– Only quirks, not quarks
– Resources or factors
– Only quarks, not quirks
Resources or factors
In the Wealth of Nations, the distribution of income and wealth was explained by the concept of __________.
– War and imperialism
– Accumulating gold and silver
– Productivity (output per worker)
– The money multiplier
Productivity (output per worker)
______________ is when a resource is not fully utilized, such as your when your Economics professor has to sweep the streets as a primary job.
– Under-employment
– Unemployment
– Inflation
– Economic Efficiency
Under-employment
In the graph above, the point _______ represents values resulting in unemployment.
– A
– E
– C
– D
D
In the Circular Flow example … if all of the units produced are “fast food cheeseburgers”, the “utility” in any one particular cheeseburger might be considered ___________ according to our course THEME about “choices”
– A risk
– An uncertainty
– Both a. and b.
– None of the above
Both a. and b.
Marxist economics led to the creation of a communist state in ____________ .
– California
– Maine
– North Dakota
– Russia
Russia
The ability of people to ____________ is determined by their skill, knowledge, and training.
– Sleep
– Produce
– Reproduce
– Get along
Produce
___________ efficiency is gaining the most output with a given amount of input, but not relating output to consumer utility.
– Economic
– Productive
– Industrial
– Human
Productive
A shift in a PPC/PPF to the right (or outward) illustrates Growth which may be generated by __________________ (better utilizing existing resources) or by acquiring more resources over time.
– Working overtime
– Increasing imports
– Improved Technology
– Using first (or low) gear
Improved Technology
Workers formed unions and eventually these were recognized as a legal entity having the right of _________________ .
– Habeus corpus
– Collective bargaining
– A fair trial
– Multiple votes
Collective bargaining
What is the benefit of moving from B to C ?
– 3 units of clothing
– 9 units of clothing
– 2 computers
– 4 computers
3 units of clothing
In the Circular Flow example, the Consumption Goods will be divided up among the Households _______________ in a Market based economy.
– According to their wants and needs
– Equally
– According to their income
– None of the above
According to their income
__________ theory did not take into account the advancement of technology and systems changes.
– Thomas Malthus’
– Robert Owen’s
– Karl Marx’s
– David Ricardo’s
Thomas Malthus’
What is the benefit of moving from B back to A ?
– 2 units of clothing
– 4 units of clothing
– 9 computers
– 3 computers
3 computers
Entrepreneurs are well compensated in a market economy if they provide high utility to consumers at a relatively low ___________.
– Cost
– Utility
– Profit
– Rent
Cost
In the Circular Flow example, the amount of Income that is flowing into the Household sector is ___________ .
– $2500
– $5000
– $120
– $125
$5000
The __________ assumes that a nation has only two goods and they are graphed with varying combinations along the X and Y axis.
– Jessica Simpson Approach
– Six Degrees of Kevin Bacon
– Dallas Maverick’s Implosion
– Production Possibilities Curve (also know as the PPF)
Production Possibilities Curve (also know as the PPF)
The _____________ of a nation is determined by the resources available and how they are used.
– Sovereignties
– Standard of Living
– Quarks
– Quirks
Standard of Living
In America during the early 1900’s ________________ became an economic force as the role of workers became fundamental for economic growth.
– The Republican party
– Red Bull
– Labor Unions
– Tobacco
Labor Unions
Productive efficiency is gaining the most _________ with a given amount of input, but not relating output to consumer utility.
– Output
– Sovereignty
– Resources
– Satiation
Output
____________ argued that capitalism would lead to socialism and then to communism as armies of unemployed workers would force economic change.
– Thomas Malthus
– Robert Owen
– Karl Marx
– David Ricardo
Karl Marx
Thomas Malthus’ theory did not take into account the role of _______________ .
– Sunspots and global warming
– Shifts from optimism to pessimism
– Technology and systems changes
– Adrenaline and endorphin changes
Technology and systems changes
Adam Smith explained that the purpose of Government was to facilitate the market and, therefore, it should have a very ________ role in an efficient market system
– Ceteris Paribus
– Semper Fidelis
– Laissez Faire
– Nonus Abovus
Laissez Faire
___________ efficiency is gaining the most output with a given amount of input, but not relating output to consumer utility.
– Economic
– Productive
– Industrial
– Human
Productive
Any point inside the frontier (curve) describes an economy with___________ of one or more of the four basic resources.
– Under-employment
– Unemployment
– A. or b.
– None of the above
A. or b.
_________ production involves the human resource called Labor.
– Most
– Some
– All
– None of the above
All

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