Quiz 2, exam one. – Flashcards
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______________ is when a resource is not fully utilized, such as your when your Economics professor has to sweep the streets as a primary job. A) Under-employment B) Unemployment C) Inflation D) Economic Efficiency
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Under-employment
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What is the opportunity cost of moving from B back to A ? A) 2 units of clothing B) 4 units of clothing (correct) C) 9 computers D) 6 computers
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4 Units of clothing
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Entrepreneurs are well compensated in a market economy if they provide high utility to consumers at a relatively low ___________ . A) cost B) utility C) profit D) rent
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Cost
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__________________ theory did not take into account the advancement of technology and systems changes. A) Thomas Malthus' B) Robert Owen's C) Karl Marx's D) David Ricardo's
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Thomas Malthus
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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. A) strong B) limited C) high D) all of the above
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lIMITED
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Under-employment is when a resource is not fully utilized, such as when _____________________________________________. A) your Economics professor cannot find even a street sweeping job B) c. or d. below (correct) C) an office building stands 80% empty D) a computer network runs at only 50% of capacity
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c or d
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Workers formed ___________ and eventually these were recognized as a legal entity having the right of collective bargaining A) guilds B) chain gangs C) unions D) websites
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unions
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In the Circular Flow example, _____________ units of Services and Goods are being produced by the Business sector. A) 2500 B) 5000 C) 125 D) no
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2500
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In the Circular Flow example, the Consumption Goods will be divided up among the Households _______________ in a Market based economy. A) according to their wants and needs B) equally C) according to their income D) none of the above
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According to their income
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The ability of people to conceive an idea (innovate), bring together resources, and take _________ when starting a business are all part of Entrepreneurship. A) obscene profit B) big losses C) the risk D) none of the above
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The Risk
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_________ production involves the human resource called Labor. A) Most B) Some C) All D) None of the above
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All
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What is the benefit of moving from A to B ? A) 4 units of clothing (correct) B) 6 units of clothing C) 6 computers D) 4 computers
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4 units of clothing
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In the Circular Flow example, there are ________ un-employed people at the present time. A) 120 B) 125 C) no D) 5
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5
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In the Circular Flow example, the Consumption Goods will be divided up among the Households according to their income in a __________ based economy. A) Tradition B) Autocratic (or Authoritarian) C) Market D) Command
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Market
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What is the benefit of moving from B back to A ? A) 2 units of clothing B) 4 units of clothing C) 9 computers D) 3 computers
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3 computers
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The ability of people to ____________ is determined by their skill, knowledge, and training. A) sleep B) produce C) reproduce D) get along
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Produce
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The transition away from ___________________ systems began as the manor life yielded to the city life in the 17th and 18th centuries in Europe. A) Fantasy and Utopian B) Market and Autocratic C) Command and Market D) Traditional and Autocratic
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Traditional and Autocratic
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In the Wealth of Nations, the distribution of income and wealth was explained by the concept of ______________________. A) war and imperialism B) accumulating gold and silver C) productivity (output per worker) D) the money multiplier
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Productivity (output per worker)
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The Standard of Living of a nation is determined by the __________ available and how they are used. A) quarks or quirks B) only quirks, not quarks C) resources or factors (correct) D) only quarks, not quirks
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Quarks or quirks
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What is the benefit of moving from B to C ? A) 3 units of clothing B) 9 units of clothing C) 2 computers D) 4 computers
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3 Units of Clothing
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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. A) working overtime B) increasing imports C) improved Technology (correct) D) using first (or low) gear
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improved technology
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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. A) the revised sequence B) consumer sovereignty (correct) C) the system of tradition D) the system of command
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Consumer sovereignty
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_____________ of concepts is one important means of understanding Economics. A) Digitizing B) Nono-engineering C) Visualization D) Mastication
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Visualization
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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. A) Jessica Simpson Approach B) Six Degrees of Kevin Bacon C) Dallas Maverick's Implosion D) Production Possibilities Curve (also know as the PPF)
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Production Possibilities Curve (also know as the PPF)
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___________ economics led to the creation of the communist state in Russia. A) Smithian B) Owenian C) Oprah D) Marxist
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Marxist
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In the Circular Flow example, the amount of Spending that is flowing out of the Household sector is ___________ A) $120 B) $125 C) $2500 D) $5000
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5000
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_____________ predicted that economic activity would evolve in cycles of misery and catastrophe. A) Adam Smith B) Karl Marx C) David Ricardo D) Thomas Malthus
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Thomas Malthus
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In the graph above, the point D represents values resulting in ____________. A) inflation B) efficiency C) unemployment D) growth
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Unemployment
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Workers formed unions and eventually these were recognized as a legal entity having the right of _________________ . A) habeus corpus B) collective bargaining C) a fair trial D) multiple votes
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Collective bargaining
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In the Circular Flow example, Business are choosing to employ __________ people from the Factor Market. A) all B) 120 C) 125 D) none of the above
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120
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A shift in a PPC/PPF to the______________ illustrates Growth which may be generated by better utilizing existing resources (improved Technology) or by acquiring more resources over time. A) left (or inward) B) right( or outward) (correct) C) first (or low) gear D) none of the above
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Right (or outward)
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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 A) Ceteris Paribus B) Semper Fidelis C) Laissez Faire D) Nonus Abovus
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Laissez Faire
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Any point inside the frontier (curve) describes an economy with___________ of one or more of the four basic resources. A) Under-employment B) Unemployment C) a. or b. D) None of the above
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A or B
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In the Circular Flow example ... if all of the units produced are "fast food cheeseburgers", then the cheeseburger itself __________ A) is a hazard to your health (normative statement ?) B) contains a lot of utility (normative statement ?) C) is a "good" (as opposed to the "service" being "fast" ... or not) D) is a "service" (as opposed to a "good")
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is a "good" (as opposed to the "service" being "fast" ... or not)
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Karl Marx argued that ___________ would lead to socialism and then to communism as armies of unemployed workers would force economic change. A) capitalism B) fascism C) democracy D) totalitarianism
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Capitalism
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What is the opportunity cost of moving from B to C ? A) 3 units of clothing B) 9 units of clothing C) 2 computers D) 4 computers
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4 computers
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The process of production is determined by the ____________ which are the economic resources used for creating output. A) factors of production B) consumer utilities C) national sovereignties D) labor and land
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Factors of production
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Marxist economics led to the creation of a communist state in ____________ . A) California B) Maine C) North Dakota D) Russia
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Russia
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The process of production is determined by the factors of production which are ____________ used for creating output. A) labor and land B) capital and entrepreneurship C) land and capital D) All of the above
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all the above
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In the graph above, the point _______ represents values resulting in unemployment. A) A B) E C) C D) D
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ANSWER is D
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Thomas Malthus predicted that economic activity would evolve in cycles of ___________________ . A) inflation and deflation B) misery and catastrophe (correct) C) global warming and ice ages D) natural sunspots
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Misery and catastrophe
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Economic efficiency is gaining the most output to maximize consumer ______ with a given amount of input. A) sovereignty B) productivity C) output D) utility
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Utility
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