question

"The economy" refers to the sum of all our:

answer

Production and consumption activities C

question

To an economist, scarcity means that:

answer

There are not enough resources available to satisfy all our desires D

question

What is not a factor of production?

answer

The $100,00 used to start a new business B

question

Capital, as economists use the term, refers to:

answer

Final goods that are used to produce other goods and services D

question

The role of the entrepreneur in an economy is to:

answer

Bring the factors of production together to assume the risk of production A

question

T/F All output combinations that lie outside a production-possibilities curve are attainable with available resources and technology.

answer

False

question

T/F Efficiency in production means getting the most output possible from the available resources.

answer

True

question

T/F Adam smith observed how government directives can lead to the best allocation of resources.

answer

False

question

T/F The essential feature of the market mechanism is the price signal.

answer

True

question

T/F Government failure occurs when government intervention fails to improve economic outcomes.

answer

True

question

In order to measure what a country produces, we:

answer

Summarize the monetary value of output D

question

What is not included in the U.S. GDP?

answer

Shoes produced by NIKE in foreign countries and sold in the U.S. C

question

Economic growth

answer

Is an increase in output or real GDP A

question

Suppose during a year an economy produces $10 trillion of consumer goods, $4 trillion of investment goods, $6 trillion of government services, and has $ 4 trillion of exports and $5 trillion of imports. The GDP would be:

answer

$19 trillion A

question

Outsourcing [American firms sending work to foreign countries] leads to:

answer

Increases in productivity and increases in total output A

question

What is an example of investment, as a component of GDP?

answer

The purchase of a truck by a delivery company A

question

The productivity of American workers reflects

answer

Scarcity of plant and equipment D

question

Which of the following is a true statement? A) Government intervention is sometimes used to reduce the external costs of production B) Income transfers are included with government purchases in calculating the GDP

answer

A) Government intervention is sometimes used to reduce the external costs of production

question

What describes state and local taxes in the U.S.?

answer

They tend to be regressive... taking a higher percentage of dollars as income falls B

question

In the United States, the richest fifth of the population (20%) recieves about one-half (50%) of all income

answer

this statement is True even though the U.S. has proportional tax system B

question

The goals of the market participants are the maximization of:

answer

Satisfaction from purchases for consumers, profits for business, and society's general welfare for government C

question

Business firms supply goods and services to ____ and purchase factors of production in ____.

answer

Product markets; Factor markets C

question

Abuyer is said to have a demand for a good only when:

answer

The buyer is both willing and able to purchase the good at alternative prices B

question

A shift in demand is defined as a change in the :

answer

Quantity demanded at any given price C

question

What is a determinant of supply?

answer

Available technology D

question

What providess an example of the law of supply?

answer

Price falls and the qauntity supplied decreases D

question

T/F An increase in the price of one good can cause the demand for another good to increase if the goods are substitutes.

answer

True

question

T/F The market mechanism satifies consumer desires and maximizes business profits

answer

False

question

sociopsychiatric explanations of consumer behavior include the:

answer

Desire for ego and status A

question

Economic explanations of consumer behavior include:

answer

Prices and income D

question

Utility refers to the:

answer

Satisfaction obtained froma good or service A

question

The law of diminishing marginal utility suggests that:

answer

People are willing to buy additional quantities of a good only if its price falls A

question

Price elasticity helps to explain:

answer

The amount by which the wuantity demanded will change if price changes C

question

T/F The law of diminishing marginal utility does not apply to goods that a person really enjoys

answer

False

question

T/F The price elasticity of demand tells us how consumers respond to a change in income

answer

False

question

The demand of cigarettes is relatively price inelastic

answer

True

question

A successful advertising campaign will make demand for the product less price elastic

answer

True

question

When a firm advertises it is attempting to decrease the price elasticity of demand for the product

answer

True

quizes 1-4 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards