Multiple Choice Questions

economic models like the ___ are not physical models, but instead are diagrams or graphs or even mathematical equations that represent economic patterns or theories
  • circular flow diagram
  • economics of scale
  • market-oriented economy
  • international trade
in the ___ households work & receive payment from firms
  • labor market
  • goods & services market
  • cuba and north korea
  • interest rates
which of the following is generally accepted as valid criticism of the production of useful goods & services?
  • environmental pollution
  • government spending
  • interest rates
  • a decrease in unemployment rate
because of their relatively small national economies, which of the following is most likely considered to be the most important factor for Belgium, Korea and Canada to take full advantage of specialization
  • international trade
  • interest rates
  • government spending
  • environmental pollution
Market economy
  • is typically anagricultural economy where things aredone the same as they have alwaysbeen done.
  • for many goods,as the level of production increases, the average cost ofproducing each individual unit declines
  • is an economywhere economic decisions aredecentralized, resources are ownedby private individuals, and businessessupply goods and services based ondemand
  • allows workers tofocus on the parts of the production process where theyhave an advantage. Workers who specialize in certain tasks often learn toproduce more quickly and with higher quality
when nations desire a healthy macroeconomy, they typically focus on three goals: one of them being
  • low inflation
  • government
  • government spending
  • interest rates
in a command economy the __ either makes most economic decisions itself or at least strongly influences how the decisions are made
  • market-oriented economy
  • buyers and sellers
  • government
  • government spending
_____- a term referring to the fact that for many goods, as the level of production increases, the average cost of producing each individual unit declines
  • division of labor
  • economics of scale
  • circular flow diagram
  • buyers and sellers
the basic difference between macroeconomics and microeconomics is
  • is an economywhere economic decisions aredecentralized, resources are ownedby private individuals, and businessessupply goods and services based ondemand
  • microeconomics concentrates on the behavior of individual consumers & firms while macroeconomics focuses on the performance of the entire economy
  • flows of goods, services & payments between households and firms
  • an increase in labor costs will increase the additional cost of producing another bus
Market
  • is typically anagricultural economy where things aredone the same as they have alwaysbeen done.
  • is an economywhere economic decisions aredecentralized, resources are ownedby private individuals, and businessessupply goods and services based ondemand
  • is the interaction betweenpotential buyers and sellers
  • can lead to an increase in overall production
Traditional economy
  • is an economywhere economic decisions aredecentralized, resources are ownedby private individuals, and businessessupply goods and services based ondemand
  • the way a good or service is produced isdivided into a number of tasks that are performed by differentworkers.
  • is typically anagricultural economy where things aredone the same as they have alwaysbeen done.
  • for many goods,as the level of production increases, the average cost ofproducing each individual unit declines
which of the following best describes a fiscal policy tool?
  • environmental pollution
  • government spending
  • interest rates
  • a decrease in unemployment rate
Specialization
  • the way a good or service is produced isdivided into a number of tasks that are performed by differentworkers.
  • microeconomics concentrates on the behavior of individual consumers & firms while macroeconomics focuses on the performance of the entire economy
  • is an economywhere economic decisions aredecentralized, resources are ownedby private individuals, and businessessupply goods and services based ondemand
  • allows workers tofocus on the parts of the production process where theyhave an advantage. Workers who specialize in certain tasks often learn toproduce more quickly and with higher quality
the circular flow diagram of economic activity is a model of the
  • microeconomics concentrates on the behavior of individual consumers & firms while macroeconomics focuses on the performance of the entire economy
  • shows how households and firms interact in thegoods and services market, and in the labor market.
  • flows of goods, services & payments between households and firms
  • for many goods,as the level of production increases, the average cost ofproducing each individual unit declines
vocab division of labor
  • for many goods,as the level of production increases, the average cost ofproducing each individual unit declines
  • is typically anagricultural economy where things aredone the same as they have alwaysbeen done.
  • shows how households and firms interact in thegoods and services market, and in the labor market.
  • the way a good or service is produced isdivided into a number of tasks that are performed by differentworkers.
what does The circular flow diagram show
  • the way a good or service is produced isdivided into a number of tasks that are performed by differentworkers.
  • shows how households and firms interact in thegoods and services market, and in the labor market.
  • flows of goods, services & payments between households and firms
  • for many goods,as the level of production increases, the average cost ofproducing each individual unit declines
specialization
  • can lead to an increase in overall production
  • the way a good or service is produced isdivided into a number of tasks that are performed by differentworkers.
  • is typically anagricultural economy where things aredone the same as they have alwaysbeen done.
  • is the interaction betweenpotential buyers and sellers
Economic Theory
  • allows workers tofocus on the parts of the production process where theyhave an advantage. Workers who specialize in certain tasks often learn toproduce more quickly and with higher quality
  • is an economywhere economic decisions aredecentralized, resources are ownedby private individuals, and businessessupply goods and services based ondemand
  • for many goods,as the level of production increases, the average cost ofproducing each individual unit declines
  • is a representation of anobject or situation that is simplified whileincluding enough of the key features to help usunderstand the object or situation.
which of the following is most likely a topic of discussion in macroeconomics?
  • interest rates
  • a decrease in unemployment rate
  • an increase in labor costs will increase the additional cost of producing another bus
  • environmental pollution
in a __ most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers & sellers
  • buyers and sellers
  • market-oriented economy
  • government
  • environmental pollution
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Multiple Choice Questions
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