Econ Test Chapter 2

A (an) __________________________ is an organizational structure for addressing, what, how and for whom to produce. a. economic system b. incentive c. basic economic question d. society's economic goal

A

Entrepreneurs who risk their own money and time to build a business receive: a. a profit. b. interest. c. rent. d. a wage.

A

Expenditures for which the government receives no good, service, or resource in return, are called a. a transfer payment. b. a factor payment. c. property right. d. a public good.

A

In recent years, e-book readers and downloadable ebooks have experienced great economic growth. What is one likely tradeoff of this etechnological change? a. Owners of traditional bookstores experience less economic security. b. The standard of living for people working in other entertainment fields declines. c. Sustainability is challenged as people throw old paper books away. d. Equity decreased among authors of different types of books

A

Resources are exchanged for money in: a. factor markets. b. product markets. c. international markets. d. the market for public goods

A

The United States has a: a. mixed economy. b. command economy. c. traditional economy. d. socialist economy.

A

What is the primary incentive for business owners in a market economy? a. earning profits b. meeting production quotas c. managing rationing d. achieving economic security

A

Which of the following is NOT one of the ways that the government can improve market performance? a. eliminating all regulations b. enforcing contracts c. enacting regulations d. enforcing property rights

A

Which of the following is a way that government activity reaches into the circular flow? a. acts as a buyer of resources b. acts as a receiver of transfer payments c. acts as a seller of resources d. acts as a payer of taxes

A

Which of the following is an economic goal that market economies do well in achieving? a. efficiency b. sustainability c. equity d. economic security

A

Which of the following is an example of a public good? a. removing snow from roadways b. buying a new computer c. buying a new car d. mowing the grass in your yard

A

Which of the following would most contribute to economic security within a society? a. Companies produce a great deal of well-paying jobs. b. Many households lack enough income to pay their bills on time. c. A large number of people apply for a limited number of job openings. d. The government decides to eliminate of the social safety net.

A

A ___________________ consists of an individual or group of people who live together and share income. a. government b. household c. firm d. business

B

A communist economy is a type of: a. traditional economy. b. command economy. c. market economy. d. mixed economy

B

A good or service that can be consumed by many people at once, and that other people can't be prevented from using, is a: a. factor payment. b. public good. c. market good d. transfer payment.

B

Country X has a socialist economy. Which person or group most likely controls energy resources in Country X? a. private companies b. a government agency c. one political leader d. energy industry investors

B

In a _____________ economy, central planners make the important decisions about what, how, and for whom to produce. : a. mixed b. command c. market d. traditional

B

In a _____________ economy, decisions about resources are made by habit, custom, superstition, or religion. a. market b. traditional c. mixed d. command

B

__________ is the quality of being just and fair. a. Sustainability b. Equity c. Economic growth d. Financial security

B

__________________ is an increase in the amount of goods and services an economy can produce over time. a. Equity: b. Economic growth c. Financial security d. Sustainability

B

A ____________ is a privately owned organization that produces goods and services and sells them to others. a. government b. household: c. firm d. market

C

A country's ________________________________ is a measure of the wealth of goods and services available to help people in the country live comfortably. a. economic growth b. financial security c. standard of living d. economic freedom

C

A household that provides labor earns: a. a profit. b. interest. c. a wage. d. rent.

C

Achieving economic growth and in the process using up resources faster than they become available puts the goal of economic growth in conflict with the goal of: a. equity. b. standard of living. c. sustainability. d. economic freedom.

C

Claims of legal ownership are called a. markets. b. entrepreneurs. c. property rights d. economies.

C

Households that lend firms money to buy capital receive: a. a wage. b. a profit. c. interest. d. rent.

C

In a _____________ economy, decisions about resources are made by some combination of a market economy with significant government involvement and elements of tradition. a. market b. traditional c. mixed d. command

C

The economic system in which the primary incentive is private gains and losses from voluntary exchange is: a. a traditional economy: b. a command economy c. a market economy d. all of the above

C

When an economy decides to distribute goods and service to its citizens based on their contribution to the society they are dealing with the economic question of: a. how to produce. b. when to produce. c. for whom to produce. d. what to produce.

C

When an economy decides to distribute goods and service to its citizens based on their contribution to the society they are dealing with the economic question of: a. how to produce. b. when to produce. c. for whom to produce d. what to produce.

C

Which economic goal did the economic system supported by the philosopher Karl Marx most strive to achieve? a. economic growth b. sustainability c. equity d. economic freedom

C

Which statement best summarizes the idea of equality of opportunity? a. Employers should be required to exercise fair hiring practices. b. All people should have the chance to purchase the same goods and services. c. Members of a society should have the freedom to choose among equal chances in life. d. Government leaders should ensure that all citizens have access to a social safety net.

C

________________ is the ability to keep things as they are indefinitely. a. Equity b. Economic growth: c. Sustainability d. Financial security

C

A (an) ___________________ is the prospect of a reward or punishment that influences a decision or motivates action . a. social safety net b. tradeoff c. economy d. incentive

D

A ____________________ can be any form of government assistance for those with financial needs. a. opportunity cost b. tradeoff c. scarce resource: d. social safety net

D

All modern market economies: a. are command economies. b. contain a mixture of traditional and command economies. c. are traditional economies. d. are mixed economies.

D

Citizens with ________________________ have confidence in their ability to support themselves and their families. a. sustainability b. economic growth c. equity d. economic security

D

In a _____________ economy, most important decisions about resources are made by business owners and consumers. a. traditional b. mixed c. command d. market

D

In countries where social safety nets are very low we would expect to find: a. people working less. b. people saving less of their income. c. people paying higher taxes. d. people saving more of their income.

D

Incentives help individuals make economic decisions by: a. telling them the total cost of a certain good or service. b. always offering a monetary reward. c. determining what type of economic system a person lives under. d. providing a reason to accept the opportunity cost of a choice.

D

Which of the following is an economic goal that command economies do NOT do well in achieving? a. equity b. economic security c. economic growth d. economic freedom

D

Which of the following statements most closely relate to the economic question of what to produce? a. People do not necessarily have equal access to goods and services because of scarce money. b. An automobile manufacturing company may use many workers and few machines or many machines and few workers. c. Electricity can be generated using flowing water, wind, or sunlight. d. If more land is used to grow wheat, less land is available to grow oats.

D

Which of the following transactions would take place in the product market? a. firms paying taxes to government b. firms buying labor from households c. firms buying land from households d. firms selling goods to households

D

Which statement best explains why must government provide some public goods? a. Citizens are unwilling to pay taxes to governments that do not offer public goods and services. b. Voters expect government to be involved in the planning and management of the economy. c. Some goods are too important to be managed solely by buyers and sellers in a market. d. Market economies offer little incentive for producer to make certain shared goods and services.

D

Which statement best summarizes the idea of equality of outcome? a. Employers should be required to pay everyone an equal wage. b. Everyone should have a chance to get a good education. c. Producers should make equal amounts of goods and services. d. All people should have the same share of goods and services.

D

__________________ refers to the placement of limits on the amount of goods each person can purchase. a. Tradeoffs b. Sustainability c. Equity d. Rationing

D

The economic concept of tradeoffs is most closely associated with the basic question of: a. how to produce. b. what to produce. c. for whom to produce. d. how much to produce

b

The economic concept which involves deciding who gets the goods and services produced is most closely associated with the basic question of: a. when to produce. b. how to produce. c. for whom to produce. d. what to produce

c

Which if the following is NOT one of the three basic questions faced by countries when deciding how to allocate their scarce resources? a. For whom should it be produced? b. How should it be produced? c. What should be produced?: d. When should it be produced?

d