Eco Unit 1 Exam

The basic idea of choice presents which of the problems in economics?

Jenny wants to buy a computer and a new television before she leaves for college. She only has enough money to purchase the computer. Which of the following is the opportunity cost of purchasing the computer?

Scarcity is a basic economic problem because —

What basic economic question is addressed in the press release?

Alyssa is planning to open a small tailoring business. Which of the following represents capital needed to start such a business?

With regard to food and clothing in the production-possibilities curve above, what does Point B represent?

When can Point F on the model above be attained?

What is required for an economy producing on the curve at Point B to produce more clothing?

Paying rent instead of purchasing tickets to a concert is an example of —

Which of the following is a basic characteristic of all economic systems?

Which of the following economic systems in characterized by a lack of competition?

Economic systems that are characterized by government control of the economic decision making process are considered to be —

According to information in the excerpt, what economic problem does the Cuban economy suffer from?

Based on the information in the excerpt, what economic condition indicates that Sweden’s economy is based on socialism despite its use of free market reforms?

The economic system in the United States is referred to as free enterprise, free market, or —

Which of the following economic philosophers is described above?

Andrew values where he lives. He likes to make decisions about his job and his ability to acquire wealth. He also wants to be the one to decide what producers should produce and what he is able to purchase. In which type of economy does Andrew live?

Which characteristic of the U.S. free enterprise system creates the incentive to work, save, and invest?

One result of competition in a free enterprise system is —

Which of the following is most characteristic of the U.S. free enterprise system?

Which of the following best completes the graphic organizer?

One of the benefits of the U.S. free enterprise system is the —

The above excerpt is an example of how the U.S. economy has changed because of —

What is one way the U.S. economy can be adversely affected when interest rates are lowered?

The grocery store is which sector of the circular-flow model?

Recently, the government announced that it would discontinue the production of a particular military aircraft. How will this decision affect the circular flow model?

In what way does the event of the headline affect the circular flow model?

Which of the following best completes the diagram?

One of the advantages corporations have that sole proprietorships do not is —

Which of the following is a responsibility of a small business owner?

Which method does a corporation primarily use to raise capital?

The Nifty Toy Company has decided to incorporate and sell stock in its corporation. Which of the following will this action accomplish?