Download Quiz: Basic Economic Concepts

Name: _____________________________________________ Date: Jan-6-05 Period: __________
Quiz: Basic Economic Concepts
____ 1.
The concept of opportunity cost:
a.
b.
c.
d.
____ 2.
Government determines the answers to the basic economic questions in which one of
following basic economic systems:
a.
b.
c.
d.
____ 3.
when variable X increases so does related variable Y.
the associated statement is normative.
a number of relevant variables are assumed to be constant.
many variables affect the variable under consideration.
If there is a tradeoff between goals A and B:
a.
b.
c.
d.
____ 6.
the gross profits of all U.S. businesses were $182 billion last year.
General Motors’ profits increased in 2000.
The productivity of steelworkers increased by 1 percent in 2000.
The price of beef declined by 3 percent last year.
The term “ceteris paribus” means that:
a.
b.
c.
d.
____ 5.
command
free enterprise
traditional
market
Which of the following is a macroeconomic statement?
a.
b.
c.
d.
____ 4.
suggests that insatiable wants can be fulfilled.
is irrelevant if the production possibilities curve is shifting to the right
is irrelevant in socialistic economies because of central planning
suggests that the use of resources in any particular line of production means that
alternative outputs must be forgone.
greater fulfillment of A means lesser fulfillment of B.
goals A and B are positively correlated.
causation exists between the two goals.
greater fulfillment of A means greater fulfillment of B.
Which one of the following lists includes only capital resources?
a.
b.
c.
d.
the owners of a new start-up firm; a chemistry lab; a researcher
autos owned by a car rental firm; computers at the car rental agency; the vans
that shuffle rental customers to and from the airport
an ice arena; a professional hockey player; hockey uniforms
a hydroelectric dam; water behind the dam; power lines
(over - A)
____ 7.
Which one of the following is a positive statement?
a.
b.
c.
d.
____ 8.
The study of economics is primarily concerned with:
a.
b.
c.
d.
____ 9.
market
command
traditional
mixed
Natural resources are classified by economists as:
a.
b.
c.
d.
____ 13.
communism
authoritarian socialism
democratic socialism
capitalism
Socialism is based on which one of the following basic economic systems?
a.
b.
c.
d.
____ 12.
are made only by government policymakers.
have no impact on output, employment and price level.
are based solely on custom and tradition.
are made primarily by individual buyers and sellers acting in their own interest.
A market or “free enterprise” system is the basis for which one of the following
economic theories:
a.
b.
c.
d.
____ 11.
determining the most equitable distribution of society’s output.
demonstrating that capitalistic economies are superior to socialistic economies.
keeping private businesses from losing money.
choices that are made in seeking to use scarce resources efficiently.
In a market economic system, economic decisions:
a.
b.
c.
d.
____ 10.
An inflationary economy is preferable to a recessionary economy.
The Bush administration should do more to reduce the unemployment rate.
The current rate of inflation is 4%.
The unemployment rate is too high.
land
labor
capital
entrepreneurship
Which one of the following is NOT a basic economic question that all societies must
answer?
a.
b.
c.
d.
What is to be produced and in what quantities?
How are goods to be produced?
For whom are goods produced?
What goods must be produced by government?