econ review #2
in the circular flow diagram which of the following are exchanged in the product market
- payments - goods - services
which of the following roles of the government in a free enterprise system?
- provide public goods - address market failures - provide safety net - implement policy that encourages economic growth - regulate business
which of the following principles of american enterprise refers to the struggle among sellers to attract customs?
competition
which of the following countries experiences the smallest degree of economic freedom?
north korea
which of the following principles of american free enterprise refers to the ability of anyone to compete in the marketplace
open opportunity
the movement from one point on the production possibilities frontier to another point on the frontier explains which economic concept
opportunity cost
what is the big economic problem?
people have unlimited wants and needs and the resources available to satisfy those needs and wants are scarce
which of the following principles of american free enterprise refers to force that encourages individuals to make decisions that will improve their own material well- being
profit motive
the curved shape of the production possibilities frontier explains which economic concept
law of increasing costs
a point inside the production possibilities frontier explains which economic concept
underutilization
which of the following principles of American free enterprise refers to the ability to buyers and sellers to freely and willingly make market transactions?
voluntary exchange
what are the three economic questions?
- What goods and services should be produced? - How should goods and services be produced? - Who gets to consumes the goods and services?
which of the following are examples of needs?
- baby formula - gas - winter coat
which of the following are examples of goods?
- backpack - couch - drill - apples
which of the following economic systems is based on the ideas of john m keynes
- centrally planned
which of the following roles of the consumer in a free enterprise system?
- communicate that are desirable or undesirable - form interest groups to advocate for consumer safety - communicate that prices are fair or unfair - write authentic reviews/ feedback of goods and services
which of the following are examples of wants?
- concert ticket - expensive jewelry - netflix - designer purse
which of the following are examples of services?
- counseling - spotify - legal advice - message
what skills are necessary for someone to be a successful entrepreneur?
- creative - a visionary - a problem solver - effective communicator
the production possibility frontier explains which economic concept
- efficiency
productions possibilities curves can be drawn for
- individuals - businesses - governments
in the circular flow diagram which of the following are exchanged in the resources market
- labor - land - wages
the production possibilities curve is a model that
- shows the alternative ways an economy can use its scarce resources - shows the maximum output that's possible in an economy - shows the costs vs benefits of making a decision related outputs
economist use graphs and models to
- simplify an aspect of the economy - take something big and make it smaller - provide a visual
you are doing some fall shopping and find a sweatshirt, jacket, pair of jeans, pair of shoes, and a long sleeve t-shirt that you like. you planned to only buy one item. you really like the sweatshirt but end up deciding to buy the jacket. which item is the opportunity cost?
- sweatshirt
you are doing some fall shopping and find a sweatshirt, jacket, pair of jeans, pair of shoes, and a long sleeve t-shirt that you like. you planned to only buy one item. you really like the sweatshirt but end up deciding to buy the jacket. what are the trade-offs in this decision
- sweatshirt - jacket - pair of jeans - pair pf shoes - long sleeve t-shirt
a decison making grid would be appropriate to use for which of the following decisions?
- which job to accept between three offers - which used car to buy between two options
which economic system would be considered the least economically free?
centrally planned
which of the following would be an example of thinking at the margin?
deciding how much practice time is needed after school to have an impact in the games.
which of the following economic goals refers to the fair distribution of resources and wealth throughout society?
economic equity
the whole production possibilities frontier moving outward or inward, explains which economic concept
economic growth/decline
which of the following economic goals refers to the assurance that goods and services will be available when the people need them?
economic security
which of the following economic goals refers to the desire to keep prices stable and free from inflation?
economic stability
which of the following economic goals refers to the ability to repeat and maintain economic growth over time?
economic sustainability
which of the following economic goals refers to the desire to use resources to their greatest capacities?
full employment of resources
which of the following countries experiences the greatest degree of economic freedom?
hong kong
economics is considered a social science because it is the study of
how people behave given financial conditions
according to economist, what drives decision making?
rational self interest
A point outside the production possibilities frontier explains which economic concept
scarcity
what is the difference between scarcity and shortage?
scarcity: always exists shortage: temporary
how does a society determine which economic system to use?
the economic system is determined based on how the society answers the three economic questions
Societies answer the three economic questions based on?
their economic goals
which economic system would be considered the most economically free?
traditional
