Lesson 2

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)

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

Marxist economics led to the creation of a communist state in ____________ . - California - Maine - North Dakota - Russia

Russia

The _____________ of a nation is determined by the resources available and how they are used. - Sovereignties - Standard of Living - Quarks - Quirks

Standard of Living

_____________ predicted that economic activity would evolve in cycles of misery and catastrophe. - Adam Smith - Karl Marx - David Ricardo - Thomas Malthus

Thomas Malthus

__________ 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'

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

______________ 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 D represents values resulting in ____________. - Inflation - Efficiency - Unemployment - Growth

Unemployment

Workers formed ___________ and eventually these were recognized as a legal entity having the right of collective bargaining - Guilds - Chain gangs - Unions - Websites

Unions

Entrepreneurs are well compensated in a market economy if they provide high ________ to consumers at a relatively low cost. - Profit - Interest - Rent - Utility

Utility

__________ of concepts is one important means of understanding Economics. - Digitizing - Nono-engineering - Visualization - Mastication

Visualization

In the Circular Flow example, the amount of Income that is flowing into the Household sector is ___________ . - $2500 - $5000 - $120 - $125

$5000

In the Circular Flow example, the amount of Revenue that is flowing into the Business sector is __________ . - $5000 - $2500 - $120 - $125

$5000

In the Circular Flow example, the amount of Spending that is flowing out of the Household sector is __________. - $120 - $125 - $2500 - $5000

$5000

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, ________ 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 the Circular Flow example, _____________ units of Services and Goods are being produced by the Business sector. - 2500 - 5000 - 125 - No

2500

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

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

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

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

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

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

____________ 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

All production involves the human resource called___________. - Capital - Land - Entrepreneurship - Labor

Labor

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

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.

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

_________ production involves the human resource called Labor. - Most - Some - All - None of the above

All

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 ... 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.

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.

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

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

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

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

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 graph above, the point _______ represents values resulting in unemployment. - A - E - C - D

D

__________ efficiency is gaining the most output to maximize consumer utility with a given amount of input. - Productive - Industrial - Economic - Human

Economic

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)

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

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

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

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

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

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

Productive efficiency is gaining the most _________ with a given amount of input, but not relating output to consumer utility. - Output - Sovereignty - Resources - Satiation

Output

The ability of people to ____________ is determined by their skill, knowledge, and training. - Sleep - Produce - Reproduce - Get along

Produce

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