econ 221
Freedom of entry and exit of producers enables an economy to adjust to changes in which of the following areas
-Consumer tastes -Resource availability -Technology
Which of the following does competition require?
-Freedom of sellers and buyers to enter or leave markets -Two or more buyers and two or more sellers acting independently in a particular market
Human specialization or division of labor contributes to a society's output in which of the following ways?
-Specialization makes use of differences in ability. -Specialization fosters learning by doing. -Specialization saves time.
Which of the following best describe the reasons that specialization increases the total output society derives from limited resources?
-Specialization saves time. -Specialization fosters learning by doing. -Specialization makes use of differences in ability.
Which of the following correctly states why advanced technology and capital goods are important? (Check all that apply.)
-The most direct methods of producing a good or service are often the most efficient. -The new technology can enhance the productivity of workers
Competition among economic units ______
-implies that producers can enter or leave an industry -diffuses economic power within the businesses and households that make up the economy.
Which of the following does competition imply
-it enables the economy to adjust to changes in consumer tastes, technology, and resource availability -it provides the economy with the flexibility needed to remain efficient over time -no insurmountable barriers prevent an industry from expanding or contracting
Private individuals and businesses are able to utilize property as they wish as a result of:
-the ability to negotiate legally binding contracts. -the right of private property
In order to have competition in a market economy, there must be at least _____ or more sellers acting independently in a particular market.
2
Which of the following ensures that entrepreneurs and private businesses are free to obtain and use economic resources to produce their choice of goods and services?
Freedom of enterprise
Which of the following is true when there are many buyers and sellers acting independently in a market
No single buyer or seller can dictate the price of the product or resource because others can undercut that price.
_________ (one word) is the use of resources by an individual, firm, region, or nation to produce one or a few goods or services rather than the entire range of goods and services.
Specialization or Specialize
______ increases the total output society derives from ______ resources
Specialization; scarce
Which of the following is the most efficient method of production?
Using a combination of labor, capital and technology
A trading system that involves swapping goods for goods and requires a coincidence of wants between the buyer and the seller is called ______.
barter
The basis of competition is freedom of ______ exercised in the pursuit of ______.
choice; money
Communism exhibits all the characteristics of a ______ system
command
The market system depends on ______ both among buyers and among sellers
competition
Two or more buyers and two or more sellers acting independently in a particular product market with the freedom to enter and leave the market best describes ______.
competition
A(n) ______ system is a particular set of institutional arrangements and a coordinating mechanism that responds to the economizing problem.
economic
The most important consequence of property rights is that they ______.
encourage cooperation by ensuring that only mutually agreeable economic transactions take place
Freedom of _______ ensures that entrepreneurs and private businesses are free to obtain and use economic resources to produce their choice of goods and services.
enterprise
The title to an automobile or the deed to a cattle ranch assures a buyer that the seller is the legitimate owner of that property. This is an example of property rights _________.
facilitating exchange
True or false: Competition among sellers and government diffuses economic power within the economic units that make up an economy.
false
True or false: Specialization means using available resources to produce a variety of goods and services.
false
In a _______ system, people act in their own self-interest.
market
Under the market system, ______ coordinate the decisions made by households and businesses
markets and prices
Money performs several functions, but first and foremost it is a ______.
medium of exchange
What is the coordinating mechanism in a market system? Multiple choice question.
prices
______ ownership of capital gives capitalism its name. Multiple choice question.
private
_______ property rights help to facilitate exchange in a free market system.
private
The interaction between buyers and sellers in a market system determines ______.
product and resource prices
When every economic unit in a society attempts to achieve its own particular goal, usually requiring delivering something of value to others, it is referred to as ______.
self-interest
Rather than produce a wide array of goods and services, it is more efficient for economies to produce goods and services based upon ______
specialization
The goods and services produced by an economic unit through ______ can be exchanged for a full range of desired products produced by other economic units
specialization
Product and resource prices in a market system are determined by ______.
the interaction between buyers and sellers