U.S. and Global Economics: Unit 1

Which generally does not have the features of a game?
photography
Which word best completes the following sentence? A player’s role is his or her ______ in the game.
job
Which is a feature of all games?
rules
Which are objects that fulfill the needs and wants of consumers?
goods
Which does not take place in the game of economics?
evaluation
Which describes an action that serves the goal of equity?
a player who cheats at cards is eliminated from the game
Which best explains why not all goals in economics can be met?
Some goals are incompatible with each other.
Which explains why scarcity cannot be eliminated?
No matter how much is produced, people will always want more.
Which is a question that must be answered before production can take place?
How is production to be organized?
Which best describes what capital contributes to production?
resources created by humans to aid production
Which kind of economic system does a capitalist country have?
free-market
Which group of players make all of the economic decisions in a free-market system?
consumers and producers
According to the circular-flow model, which is most directly provided by producers?
wages
Which best explains how a free-market system has a circular flow of influences?
Consumer decisions affect producers, and producer decisions affect consumers.
Which best explains why competition is an important part of a free-market system?
Without competition, people wouldn’t have a lot of choices.
Which best explains why property rights are necessary in a free-market system?
Property rights allow consumers and producers to make free choices.
Which best explains why the profit motive often leads to efficiency and innovation?
The competition to make profit drives producers to eliminate waste.
Which describes a command economy?
run by the government
In a command economy, who makes production decisions?
the government
Which is not the job of the government in a completely socialist system?
providing producers with choices
Which is a simple way of describing cost-benefit analysis?
making a decision by listing pros and cons
Which best explains why any determination of cost must go beyond counting the money involved?
Calculations of cost and benefit are subjective.
What is one reason that people want to minimize costs?
Costs are often bad things that people don’t want to accept.
Which best describes why economic indicators are useful?
They help people determine how healthy a country’s economy is.
Which describes the inflation rate?
increase in the average level of prices
Which of the following is happening when the GDP is neither rising nor falling?
stagnation
Which would increase GDP?
more exports
Which explains the increase in the price of an item from $10 in 1980 to over $25 today?
inflation
Which economic indicator measures economic growth?
GDP over time
Which economic indicator would be most useful for figuring out how much something you bought today cost 10 years ago?
Consumer Price Index
Which best describes what technology does?
improves results
Which technological improvement did the assembly line bring?
greater productivity
Which is not a factor that leads to technological advancement?
inflation rate
Which is one way that technology can improve productivity?
Machines replace workers, reducing production cost.
Which is a direct benefit of the use of assembly lines in production?
Wasted motion is eliminated
Technology has which effect on distribution?
The shipping of goods speeds up.
Which cannot be replaced through e-commerce and the Internet?
factories
Which is the most direct effect that the Internet has had on retail sales?
the development of e-commerce
Which is the most direct benefit to consumers from the Internet?
It is easier to compare prices
Which best shows how the Internet affects the economic decisions people make?
The availability of information allows people to consider more options.
Which is not a feature common to all games?
teams
Economics is about allocating resources to produce and distribute which of the following?
goods and services
Which is an example of a production decision?
An assembly line is used to build cars.
Which describes a situation where the goal of security is being pursued?
The government establishes a retirement program for its citizens.
Which is not a goal pursued in the game of economics?
stagnation
Which best explains why players in the game of economics are often in conflict with each other?
Some economic goals are incompatible with each other.
Which question must be answered in order to turn resources into products?
How should production be organized?
Which best explains why the game of economics cannot eliminate scarcity?
No matter how much supply is produced, people’s demands will always increase to exceed supply.
Which is another term for a planned economy?
socialist system
Which best explains why the circular-flow model characterizes the free-market system?
Consumers and producers influence each other in a circular fashion.
Which government action is necessary to guarantee the conditions required for a free-market system?
laws against theft, fraud, and coercion
Which is an economic system run by the government?
a planned economy
Which goal does the government pursue in a socialist economic system?
equity
Cost-benefit analysis is a process that involves which of the following?
maximizing benefits and minimizing costs
Which results from the fact that costs and benefits are based on personal preferences?
Both monetary and nonmonetary factors are taken into account.
Which pair of words best describes using cost-benefit analysis?
rational and subjective
When the gross domestic product is neither growing nor shrinking, a country’s economy is doing which of the following?
stagnating
Which is measured by the inflation rate?
the percentage rise in price levels
The gross domestic product goes down when which occurs?
Imports increase faster than exports.
Which technological improvement did the industrial robot bring?
reduction of human workload
Which does not demonstrate the progression of important human technology?
from telephone to telegraph to cell phone
Technological improvements lead to an increase in which of the following?
productivity
The practice of buying and selling goods and services over the Internet is known as which of the following?
e-commence
Which is one of the advantages consumers enjoy because of e-commerce?
The Internet makes it easy to compare prices.
Which can people do through the Internet to make better economic decisions?
get the information that is necessary for making good choices