Economics Multiple Choice (correct answers)
We are forced to make choices because
a. not everything is limited.
b. shortages are a constant situation.
c. we live in a democracy.
d. all resources are limited. correct answers all resources are limited
The four factors of production are the resources of land, labor, capital, and
a. services.
b. entrepreneurship.
c. technology.
d. goods. correct answers entrepreneurship
A truck used by a plumber is a type of
a. capital.
b. labor.
c. raw good.
d. modus transportius. correct answers capital
The value of the next best alternative that had to be given up to do the action that was
chosen is the
a. sale price.
b. trade-off.
c. opportunity cost.
d. capital. correct answers opportunity cost
All the combinations of goods and services that can be produced in a given time with a
fixed amount of resources are called
a. costs.
b. production possibilities.
c. factors of production.
d. trade-offs. correct answers production possibilites
When Adam Smith coined the term "invisible hand," he was referring to
a. the government.
b. the market.
c. slave labor.
d. entrepreneurship. correct answers the market
Pure capitalism is also known as a
a. mixed economy.
b. laissez-faire system.
c. quota system.
d. command economy. correct answers laissez-faire System
,The desire to make money that motivates people to produce goods and services is
called
a. entrepreneurship.
b. the profit incentive.
c. laissez-faire.
d. greed. correct answers the profit incentive
hich country best follows the ideas of Adam Smith?
a. Cuba
b. North Korea
c. China
d. Singapore correct answers singapore
Productivity refers to
a. using the four factors of production.
b. creating goods and services.
c. measuring sales.
d. producing goods and services in better and faster ways. correct answers producing
goods and services in better and faster ways
Which of the following is a strength of a market economy?
a. It gives producers and consumers a great deal of freedom.
b. It provides centralized planning.
c. It offers guaranteed lifetime employment.
d. No one is allowed to live in poverty. correct answers it givers producers and
consumers a great deal of freedom
Today most economic systems are
a. command.
b. traditional.
c. capitalist.
d. mixed. correct answers mixed
The goal of economic freedom is to
a. ensure that businesses don't fail.
b. give government a large role in the economy.
c. allow people to make choices.
d. limit competition. correct answers allow people to make choices
Unemployment compensation helps provide economic
a. growth.
b. freedom.
c. stability.
d. equity. correct answers stability
Since the founding of the United States, the role of government in the economy has
, a. had no impact on individual economic choices.
b. been eliminated.
c. increased.
d. decreased. correct answers increased
Zoning regulations are an example of
a. the lack of government involvement in economic activities.
b. the role of government in regulating economic activities.
c. a traditional economy.
d. a pure market economy. correct answers the role of government in regulating
economic activities
When analyzing an economic problem, economists do not consider
a. government regulations.
b. resources.
c. choices.
d. values. correct answers values
A free enterprise system involves trade-offs between
a. state and federal government.
b. businesses in the same industry.
c. individual gain and social equity.
d. customs and beliefs. correct answers individual gain and social equity
Which of the following is an example of a good?
a. an oil change
b. a car wash
c. a tune-up
d. a car correct answers a car
"Bait and switch" is an example of __________ advertising.
a. generic
b. informative
c. deceptive
d. competitive correct answers deceptive
Generic products
a. have no name brand.
b. have lifetime warranties.
c. are sold only in major department stores.
d. are the most expensive. correct answers have no name brand
Which federal agency has the responsibility of making sure that food production is
sanitary?
a. Consumer Product Safety Commission
b. U.S. Department of Agriculture
We are forced to make choices because
a. not everything is limited.
b. shortages are a constant situation.
c. we live in a democracy.
d. all resources are limited. correct answers all resources are limited
The four factors of production are the resources of land, labor, capital, and
a. services.
b. entrepreneurship.
c. technology.
d. goods. correct answers entrepreneurship
A truck used by a plumber is a type of
a. capital.
b. labor.
c. raw good.
d. modus transportius. correct answers capital
The value of the next best alternative that had to be given up to do the action that was
chosen is the
a. sale price.
b. trade-off.
c. opportunity cost.
d. capital. correct answers opportunity cost
All the combinations of goods and services that can be produced in a given time with a
fixed amount of resources are called
a. costs.
b. production possibilities.
c. factors of production.
d. trade-offs. correct answers production possibilites
When Adam Smith coined the term "invisible hand," he was referring to
a. the government.
b. the market.
c. slave labor.
d. entrepreneurship. correct answers the market
Pure capitalism is also known as a
a. mixed economy.
b. laissez-faire system.
c. quota system.
d. command economy. correct answers laissez-faire System
,The desire to make money that motivates people to produce goods and services is
called
a. entrepreneurship.
b. the profit incentive.
c. laissez-faire.
d. greed. correct answers the profit incentive
hich country best follows the ideas of Adam Smith?
a. Cuba
b. North Korea
c. China
d. Singapore correct answers singapore
Productivity refers to
a. using the four factors of production.
b. creating goods and services.
c. measuring sales.
d. producing goods and services in better and faster ways. correct answers producing
goods and services in better and faster ways
Which of the following is a strength of a market economy?
a. It gives producers and consumers a great deal of freedom.
b. It provides centralized planning.
c. It offers guaranteed lifetime employment.
d. No one is allowed to live in poverty. correct answers it givers producers and
consumers a great deal of freedom
Today most economic systems are
a. command.
b. traditional.
c. capitalist.
d. mixed. correct answers mixed
The goal of economic freedom is to
a. ensure that businesses don't fail.
b. give government a large role in the economy.
c. allow people to make choices.
d. limit competition. correct answers allow people to make choices
Unemployment compensation helps provide economic
a. growth.
b. freedom.
c. stability.
d. equity. correct answers stability
Since the founding of the United States, the role of government in the economy has
, a. had no impact on individual economic choices.
b. been eliminated.
c. increased.
d. decreased. correct answers increased
Zoning regulations are an example of
a. the lack of government involvement in economic activities.
b. the role of government in regulating economic activities.
c. a traditional economy.
d. a pure market economy. correct answers the role of government in regulating
economic activities
When analyzing an economic problem, economists do not consider
a. government regulations.
b. resources.
c. choices.
d. values. correct answers values
A free enterprise system involves trade-offs between
a. state and federal government.
b. businesses in the same industry.
c. individual gain and social equity.
d. customs and beliefs. correct answers individual gain and social equity
Which of the following is an example of a good?
a. an oil change
b. a car wash
c. a tune-up
d. a car correct answers a car
"Bait and switch" is an example of __________ advertising.
a. generic
b. informative
c. deceptive
d. competitive correct answers deceptive
Generic products
a. have no name brand.
b. have lifetime warranties.
c. are sold only in major department stores.
d. are the most expensive. correct answers have no name brand
Which federal agency has the responsibility of making sure that food production is
sanitary?
a. Consumer Product Safety Commission
b. U.S. Department of Agriculture
