Economics Vocab Test

1.

5 points

Privatization is best described as

the transfer of ownership of property or businesses from a privately owned entity to government.

the transfer of ownership of property or businesses from a government to a privately owned entity.

none of the above.

2.

5 points

Supply is the economic principle that is described as consumer’s desire and willingness to pay a price for a certain good or service.

True

False

3.

5 points

An economic system in which decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's citizens and businesses with little government intervention.

Market Economy

Mixed Economy

Command Economy

Strong Economy

4.

5 points

Which is NOT one of the five stages of the business cycle?

Recession

Recovery

Adaptation

Peak

5.

5 points

The best example of a command economy is capitalism.

True

False

6.

5 points

Capital goods are intangible assets.

True

False

7.

5 points

The rate at which the general level of prices for goods and services fall and purchasing power increases is called inflation.

True

False

8.

5 points

Economics is a social science that studies how individuals, governments, firms and nations make choices on allocating scarce resources to satisfy their unlimited wants.

True

False

9.

5 points

An economic system is the way a state or nation organizes the allocation of resources.

True

False

10.

5 points

A depression is a severe decline in the GDP that last for two or more years.

True

False

11.

5 points

The fundamental economic concept that describes the total amount of a specific good or service that is available to consumers is

Demand

Wants

Supply

Needs

12.

5 points

Labor is the sum total of all human physical and mental effort used in the creation of goods and services.

True

False

13.

5 points

Two examples of a command economy are communism and socialism.

True

False

14.

5 points

The best discription of a producer is

a form of a means of production.

an entity that generates products.

both A and B.

none of the above.

15.

5 points

Natural resources are resources that have been manufactured, process or generally 'man-made'.

True

False