Unit 1 Unit Test

Which scenario best explains scarcity?

A man has $20 but wants to take his girlfriend to a fancy steak restaurant, where he needs $70.

Which answer is NOT characteristic of a command economic system?

encouragement of the pursuit of wealth

An economy going from the trough to the peak is said to be in a state of _______.

expansion

What is the purpose of interest?

for the lender to make money in exchange for giving money to those who need it

The creators of the mixed economic system were from ______.

the United Kingdom

The concept of a "double coincidence of wants" is the instrumental part of ___.

the barter system

Fluctuations of expansion and recession are part of ___.

the business cycle

When a shopper makes a rational choice, he or she may ___.

pick the item that represents the greatest value

In a(n) __________ economy, transactions are typically done through barter rather than currency.

traditional

Which philosopher is most associated with the market economy?

Adam Smith

Which answer was NOT a weakness of the Articles of Confederation

Congress could not negotiate treaties with foreign countries.

The _______ War and the subsequent agricultural surplus contributed to the recession of 1857.

Crimean

The ______ movement influenced the foundational ideas of the market economic system.

Enlightenment

With support from the _______ Party, R.H. Tawney pushed Great Britain toward a mixed economic system.

Labour

The depression of 1893 was directly responsible for the growing popularity of the ______ Party.

Populist

Why were some of the states upset at the federal government paying off their debts?

The states did not want to be answerable to the federal government and therefore be put in a weaker position.

Economically, the government divides its earning marks into ______, each of which lasts three months.

quarters

A country's GDP economic peak is followed by ____.

recession

Credit refers to ___.

a consumer's record of going into and getting out of debt in a faithful and punctual way

Which agency is responsible for putting together business cycle information, particularly when business economies peak and plummet?

a private company outside of the government

Which country or region best exemplifies a traditional economy?

rural Africa

Karl Marx and Friedrich Engels believed that ________ was(were) wrong and that workers should control the economy.

capitalism

It is required that you have good _______ in order to purchase a home.

credit

Which answer is a characteristic of a market economic system?

all of these

The things you miss out on when you decide to spend your money on something else are considered ___.

opportunity costs