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Introduction to Economics quiz #9 Flashcards

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Introduction to Economics quiz #9
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  • Which term describes the idea that not all individuals prefer an equal ratio of outputs to incomes?
    Preference heterogeneity.
  • Which of the following is most likely categorized as a business market?
    A company buying office supplies.
  • What microeconomic factors point to the fact that your business should be successful?
    High demand and low competition.
  • Which of the following would be considered a want for most people?
    A smartphone.
  • Which market structure represents the majority of American businesses?
    Monopolistic competition.
  • Which of the following is most responsible for increases in the federal minimum wage?
    Government legislation.
  • Which of the following is most likely to be an implicit cost of production?
    Foregone income from alternative employment.
  • Why did many farmers grow cash crops?
    To sell for profit.
  • What is the term for buying out all of the competition in a particular industry?
    Monopoly formation.
  • Which movement influenced the concepts of the market economic system?
    The Enlightenment.
  • Which of the following best illustrates the medium of exchange function of money?
    Using cash to buy groceries.
  • Which type of economy is usually centered mainly on meeting people’s basic needs?
    Traditional economy.
  • What is economics? Why is it important to learn about the ideas that economics covers?
    Economics studies resource allocation; learning it helps make informed decisions.
  • Which of the following best defines a multinational corporation?
    A company operating in multiple countries.
  • Which type of marketing is used to describe items that have a universal demand?
    Mass marketing.
  • How would a growing economy generate good feelings?
    By increasing incomes and job opportunities.
  • What are the three basic principles of the General Agreement on Tariffs and Trade (GATT)?
    Non-discrimination, transparency, and reciprocity.
  • Which of the following is an example of the 'invisible hand' at work?
    Competition leading to better products.
  • Which of the following is an example of an economic activity that is part of the service sector?
    Providing legal advice.
  • Which term describes the seller's ability and desire to sell goods and services?
    Supply.
  • Which of the following would an economist most likely classify as a need?
    Food.
  • Which scenario indicates a relatively high level of economic freedom?
    Individuals freely starting businesses.
  • In a traditional economic system, how are decisions made?
    Based on customs and traditions.
  • How are economic transactions shaped in a traditional economy?
    By customs and social norms.
  • Which type of economy did hunter-gatherers and early farming societies have?
    Traditional economy.
  • What does it mean 'to assume states’ debts'?
    To take responsibility for paying state debts.
  • Which of the following can always be considered cost-effective?
    Using resources efficiently.
  • What part of the Economic Opportunity Act of 1964 was designed to help young people learn a trade?
    Job Corps program.
  • Which of the following is a characteristic of a market economy?
    Private ownership of resources.
  • Which of the following is not an example of one of the six primary ways businesses use the internet?
    Cooking recipes is not a primary use.
  • Google's business model is the most similar to that used by companies in which industry?
    Advertising industry.
  • Which of the following is a primary benefit of entrepreneurial competition?
    It leads to innovation and better products.
  • Which of the following is an important economic characteristic of real estate?
    Immobility.
  • If Jell-O is an inferior good, what happens when income rises?
    Demand for Jell-O decreases.
  • Which type of spending is not a component of gross domestic product (GDP)?
    Transfer payments are not a component.
  • Which of the following outcomes is a benefit of conventional agriculture?
    High crop yields.
  • Which of the following describes products in a natural monopoly market?
    Products are supplied by a single firm due to high costs.
  • Why do people need to buy and sell products or services?
    To satisfy wants and needs.
  • Which of the following is a reason to study economics?
    To understand how resources are allocated.
  • Which is an illustration of a microeconomic question?
    How does a price change affect a firm's sales?