Help
Options
Question
The three fundamental economic questions are
click to flip
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't know
Question
Why does every society face difficult choices in deciding what to produce?
Remaining cards (41)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Lesson 3-4 Exam
| Question | Answer |
|---|---|
| The three fundamental economic questions are | what to produce, how, and for whom? |
| Why does every society face difficult choices in deciding what to produce? | Each society has limited resources but unlimited wants. |
| The ability to make our own economic decisions without interference from the government is called | economic freedom. |
| A society that values economic equity seeks to | give everyone a fair share of the economic pie. |
| Which economic goal is encroached upon when the government taxes your wages in order to provide unemployment benefits to help those out of work? | economic freedom |
| Most traditional economies today are found | among indigenous people who live much as their ancestors did. |
| Market economies | are highly efficient at producing goods and services that people want and are willing to pay for. |
| What does the circular flow model illustrate? | It shows how money, goods, and resources move through a market economy. |
| The two kinds of markets in the circular flow model are | the product market and the factor market. |
| When Adam Smith wrote about "the invisible hand," he was referring to the power of | markets to provide goods and services at prices people will pay. |
| Which economic goals are emphasized in a modern command economy? | economic security and equity |
| Which economic goals are emphasized in a market economy? | economic efficiency and freedom |
| What is the role of government in a mixed economy? | all of the above |
| Which statement about a mixed economy is true? | The government pays household and firms for their labor and products. |
| One of the most free economies in the world is | Australia |
| Individuals own the factors of production and make decisions about how to use those factors in | a free enterprise system. |
| Why is competition important to a free enterprise system? | It results in more choices for consumers. |
| In a laissez-faire economy | producers and consumers are relatively free of government intervention |
| Intellectual property law | encourage innovation by guaranteeing that inventors and artists can profit from their creations. |
| The most significant driving force of the free enterprise system is | the profit motive. |
| Americans dearly value their economic freedom, so much that we even describe our economy as a | free enterprise system. |
| Which of the following would likely discourage specialization in an area? | a lack of good transportation |
| The development of skills in one aspect of a job is called | specialization |
| Which of the following is true of self-sufficient societies? | Self-sufficient societies are less productive than specialized societies. |
| An athletic person picks fruit, and their sociable friend sells the fruit. This is an example of | division of labor. |
| An economy can produce more with the same inputs of land, labor, and capital when people | specialize in a specific task or skill. |
| According to James Gwartney, Richard Stroup, and Dwight Lee in "Common Sense Economics," what is the foundation of trade? | Mutual Gain |
| When people specialize and trade, they | become economically interdependent. |
| Why did the United State's founding fathers set up trade barriers to limit interstate trade? | They wanted to promote self-sufficiency. |
| Susan can score seven goals, where as Rob can score five. Susan has | an absolute advantage. |
| When does a person have a comparative advantage? | when they have a lower opportunity cost than others |
| How do you start calculating a person's comparative advantage? | You calculate their opportunity cost associated with an activity. |
| ________ based on comparative advantage benefits both trading partners. | Specialization |
| Which of the following could contribute to a nation having a comparative advantage over another nation? | all of the above |
| Economist Michael Bade defined wealth as | the total value of everything a person owns. |
| What is one reason trade makes people wealthier? | It lowers the cost of goods. |
| How does trade increase the value of goods? | Trade moves goods from people who value them less, to people who value them more. |
| Which of the following is true of the American economy and trade? | Most Americans experience benefits from global trade. |
| How can global trade function as a disadvantage for some people? | It can take business away from local producers. |
| How does trade increase the variety and quantity of goods available? | Trade provides access to goods from around the globe. |
| Because trade expands the market for products, it can | lower the cost of goods by using mass production. |
| How do people and nations gain from specialization and trade? | comparative advantage |
Created by:
jayxvu