Economics 1st trimester exam
2.2 Which of the statements best describes the communist ideal?
1-a classless society in which everyone works 2 for the common good
1.2 According to this production possibilities curve, if the country Alpha chose to produce 40 units of cars, how many units of clothing could it produce? a. 420 b. 400 c. 500 d. 300
400
1.3 How does economic interdependence affect international relations?
Countries that cooperate economically tend to get along better politically.
1.2 According to this production possibilities curve, which point is impossible to achieve unless country Alpha find more resources to produce these items. a. a b. e c. d d. c
D as in point D
1.3 What is the relationship between division of labor and specialization?
Division of labor is the organization of work so that each worker does a separate piece of the overall task. This allows for specialization, in which each worker does only the task that he or she can do more efficiently than others.
1.2 People's skills, abilities, health, knowledge, and motivation all add up to entrepreneurship.
F - ENTERPRUENERSHIP
1.3 Economic growth usually can be achieved without investing in new resources.
FALSE
1.3 People's skills, abilities, health, knowledge, and motivation all add up to entrepreneurship
FALSE
1.3 Economic growth causes the production possibilities frontier to contract.
FALSE
2.2 T/FCommunist countries like North Korea and Cuba are examples of mixed economies
FALSE
2.2 T/FMixed economies work to the degree that they embrace democracy.
FALSE
2.2 Communist countries like North Korea and Cuba are examples of mixed economies.
False
2.2 Mixed economies work to the degree that they embrace democracy.
False
1.3 What does the circular flow model show?
How workers, businesses, and consumers interact
1.2 Which of the following statements best describes the purpose of the production possibilities curve? a. It predicts the future production of a nation. b. It identifies trends in production. c. It shows which products are most profitable. d. It identifies all possible combinations of goods and services an economy can produce.
It identifies all possible combinations of goods and services an economy can produce.
2.2 Why did Sweden move from socialism to a more mixed economy in the 1980s?
Its citizens objected to the nation's high rate of taxation.
2.1 How is the principle of "There's No Such Thing As A Free Lunch" illustrated in a socialist economy?
Socialist economies tend to offer extensive government services but have high tax rates.
2.2 Which of these is an accurate statement about mixed economies today?
There are more mixed economies in the world than any other kind.
2.1 What kind of economy offers uniformity in wages regardless of individual productivity? CHP 2 L 1
command economies or command and socialist economies
1.3 Division of labor is practiced because .......
it increases efficiency by ensuring that workers become good at specific tasks.
1.3 . The amount of output in a specific amount of time with a given amount of resources is referred to as ----
productivity.
1.3 Dave gets a job at a grocery store, which pays him an hourly wage in exchange for his labor. Dave is participating in ---
the factor market.
2.2 Which of the following describes a move away from capitalism?
the nationalization of major industries in Hugo Chavez's Venezuela
1.2 Consumers are powerful because a. they have more rights than corporations. b. they help decide a business's opportunity costs. c. they drive decisions about what to produce. d. their interests force producers to behave ethically. Chp 1 L 2 (10 questions)
they drive decisions about what to produce.
2.2 Who did Karl Marx believe would be the beneficiaries of socialism?
workers
1.3 Labor that generates income for you can be your personal participation in a factor market.
True
1.3 Economic growth is an increase in a nation's output of goods and services over time.
True
2.2 There is always some degree of government involvement in a mixed economy.
True
1.2 Which of these do economists use to illustrate combinations of output? a. a production possibilities curve b. a cost-benefit analysis c. a factor of production d. a division of labor
a production possibilities curve
1.2 Which of the following descriptions best explains the meaning of opportunity cost? a. the initial cost of starting a new business b. the cost of business failure c. the cost of choosing one alternative over another d. the risk associated with producing a new item
c. the cost of choosing one alternative over another
2.1 In a __________ economy, production questions are answered by the government.
command
1.3 In the mythical country alpha an entrepreneur produces a new technology, how is this likely to affect the production possibility?
expand
1.3 --- is where all of the factors of production are bought and sold.
factor market
1.3 Economic growth is most closely associated with an increase in ----.
goods and services.
2.2 What led to the development of U.S. government economic programs in the 1920s and 1930s?matching
in the united states
2.1 In a __________ economy, questions of what, how, and for whom to produce are answered by the buying and selling activity of individuals.
market
1.3 Businesses and individuals interact economically through the ----
market.
2.2 What factors can lead to the development of mixed economies?matching
mixed economies can develop
2.2 Who owns most of the resources in a market or capitalistic economy?matching
private indivior buisnesses
1.3 The amount of output in a specific amount of time with a given amount of resources is referred to as ---
productivity
1.2 Consumers are expected to read the full information about a product before making a purchase. This is an example of a consumer's a. opportunities. b. rights. c. habits. d. responsibilities.
responsibilities
2.1 Societies embrace various economic systems to deal with the fundamental problem of __________.
scarcity
2.1 Which of the following states an advantage of a traditional economy?
Everyone knows exactly what their function is.
2.1 Which of the following is a disadvantage of a market economy?
It sustains a high degree of uncertainty.
1.3 In the mythical country Alpha, an entrepreneur has introduced a new technology that makes manufacturing twice as efficient as before. How is this likely to affect the production possibilities frontier?
It would expand the frontier.
2.1 Which statement describes a disadvantage of a command economy?
Nothing stops the government from producing things that people don't need or want.
2.1 __________ is a system in which government owns and controls some, but not all, productive resources.
Socialism
1.3 Economic growth is an increase in a nation's output of goods and services over time
TRUE
1.3 Separation of tasks to be performed by different workers is division of labor.
TRUE
2.2 Mixed economies can evolve when societies with different kinds of economies interact.
TRUE
2.2 Socialist economies include aspects of both command and free-enterprise systems.
TRUE
2.2 T/FMixed economies can evolve when societies with different kinds of economies interact.
TRUE
2.2 T/FSocialist economies include aspects of both command and free-enterprise systems.
TRUE
2.2 T/FThere is always some degree of government involvement in a mixed economy.
TRUE
2.2 Who owns most of the resources in a socialist or command economy?matching
the gov
1.2 Which of these is most closely associated with opportunity cost? a. productivity b. entrepreneurs c. trade-offs d. consumerism
trade-offs
1.2 When deciding how to use resources, you need to evaluate the costs and benefits of each choice to decide which meets your criteria a. These are called a. trade-offs. b. opportunities. c. resource frontiers. d. priorities.
trade-offs.
2.2 What determines ownership in a traditional economy? matching
tradition
2.1 The way the 19th-century Inuit divided the "spoils of the hunt" demonstrates a __________ economy.
traditional