Unit 1 Test Review

Question 1

What is it called when there is not enough resources to produce all the things people want?

Answer 1

Scarcity

Question 2

What do we call a basic need for survival?

Answer 2

Needs

Question 3

What is a way of expressing a desire?

Answer 3

Wants

Question 4

What is a physical object that is bought and sold?

Answer 4

Goods

Question 5

What is an action or activity that one person performs for another?

Answer 5

Service

Question 6

The factor of production that accounts for a nation’s natural resources.

Answer 6

Land

Question 7

The effort that a person devotes to a task that a person is paid.

Answer 7

Labor

Question 8

The human-made resources used to produce other G & S.

Answer 8

Capital

Question 9

Organizes all the factors of production to create a business.

Answer 9

Entrepreneur

Question 10

What is the making of alternative choices called in economics?

Answer 10

Trade-offs

Question 11

What is the next best alternative use of time, money, or resources called?

Answer 11

Opportunity cost

Question 12

The idea of how much time, money or resources we use in decision making.

Answer 12

Thinking at the margin

Question 13

What does a production possibility curve show us?

Answer 13

Growth, Efficiency, Costs

Question 14

The idea that there is no such thing as free lunch deals with which of the following concepts?

Answer 14

Scarcity

Question 15

Which of the following is not one of the 3 economic questions?

Answer 15

Where to produce?

Question 16

Transitioning from human workers to robots is an example of which of the following?

Answer 16

How to produce?

Question 17

The concept that society attempts to maximize its use of scarce resources.

Answer 17

Economic efficiency

Question 18

The assembly line is an example of which of the following?

Answer 18

Economic Growth & Innovation

Question 19

The idea that “you can be whatever you want to be” is an example of which of the following?

Answer 19

Economic Freedom

Question 20

Minimum wage is an example of which of the following concepts?

Answer 20

Economic Equity

Question 21

The government controls the factors of production in what type of economy?

Answer 21

Centrally planned economy

Question 22

The economic system where the gov. controls major industries & redistributes wealth.

Answer 22

socialism

Question 23

The economic system where individuals control the factors of production & make economic choices.

Answer 23

capitalism

Question 24

The economic system where the government control all economic and political power.

Answer 24

communism

Question 25

Which of the following characteristics are not apart of modern economics?

Answer 25

Laissez-faire economics

Question 26

What type of economic system does America have?

Answer 26

Free Enterprise System

Question 27

What Amendment of the Constitution allows the government to tax income?

Answer 27

16th Amendment

Question 28

What is the force that encourages people to improve their material well-being?

Answer 28

Profit Motive

Question 29

What is the role of the consumer in the marketplace?

Answer 29

To buy goods & services Determine what is produced Determine how much to produce

Question 30

What is the negative effect of government regulation? 2 answers

Answer 30

Costs consumers Costs producers

Question 31

What two ways does the government interfere in the marketplace?

Answer 31

Educate consumers Protect health, welfare, & safety of consumers

Question 32

What is the private ownership of land, capital & labor based on the interaction of supply & demand?

Answer 32

Market Economy

Question 33

An economy based on ritual, habit or custom.

Answer 33

Traditional Economy

Question 34

An economy where a central authority makes all economic decisions with limited private property

Answer 34

Command Economy

Question 35

Which of the following countries implemented "Perestroika" economic reform?

Answer 35

Russia

Question 36

Which of the following countries implemented "the Great Leap Forward" economic reform?

Answer 36

China

Question 37

Which economy has few incentives to do better?

Answer 37

Command Economy

Question 38

Which economy has high degree of consumer satisfaction?

Answer 38

Market Economy

Question 39

Which economy has small degree of government interference?

Answer 39

Market Economy

Question 40

Which economy produces low quality goods?

Answer 40

Command Economy

Question 41

Which economy has a large expensive bureaucracy?

Answer 41

Command Economy

Question 42

Which economy has privately owned businesses?

Answer 42

Market Economy

Question 43

Which economy has a high degree of individual freedom?

Answer 43

Market Economy