Economic Goals Assessment

Policies that reduce the risk of individuals from economic harms such as loss of income due to job loss target the economic goal of

• equity
• freedom
• security
• stability

A teacher decides to help his/her students by announcing that on the next test everyone will get an A.  Students do not study for the test.  This policy could be interpreted as targeting

• economic stability at the expense of economic freedom 
• economic equity at the expense of economic efficiency
• economic efficiency at the expense of economic freedom
• economic security at the expense of economic stability

Antitrust laws could be interpreted as targeting 

• economic stability at the expense of economic freedom
• economic equity at the expense of economic efficiency
• economic efficiency at the expense of economic freedom
• economic security at the expense of economic stability

For a market system, which best answers the question, "What goods and services will be produced?"

• any good for which consumers are willing to pay a high enough price
• only those goods whose long-term profits are greater than average profits
• any good whose production is characterized by the lowest cost of technology
• any good that returns its producers sufficient revenue to cover its total costs

A friend offers you a Coke, a Dr. Pepper, or a 7-Up. You don't like Coke, so after some thought, you take the Dr. Pepper. What is the opportunity cost of your choice?

• The Coke
• The 7-Up
• The Dr. Pepper
• Nothing, because the drink was free

Which point on the Production Possibilities Curve represents a situation in which resources are not being used effectively

• A
• B
• C
• D

In what way does specialization increase productivity?

• Specialization reduces scarcity
• Specialization reduces the cost of production
• Specialization increases the demand for a product
• Specialized workers are generally more highly educated

In a mixed market economy, which of these would MOST likely be considered a basic function of government?

• to promote monopolies
• to regulate who can purchase services
• to ensure the financial stability of all citizens
• to correct market failures and redistribute income

When a society invests in education, how is it improving its productivity?

• by investing in the future
• by investing in human capital
• by investing in capital goods
• by investing in entrepreneurship