Econ Unit 1 Fundamentals Test Review

In a command economy, people have _____ economic freedom than in a market economy.

• More

• Less

• The same

• None of the above

Country X has great economic freedom, but the gov't requires some products to meet safety standards. This economy can BEST be classified as

• Mixed

• Traditional

• Market

• Command

Opportunity cost is MOST related to what economic concept?

• Marginal benefit

• Demand elasticity

• Supply elasticity

• Equilibrium price

When you're deciding whether to spend 1 more hour studying or sleeping, what economic activity are you using?

• Bartering

• Market transactions

• Trade negotiations

• Marginal analysis

Specialization ______________ productivity

• Decreases

• Has no effect

• Increases

• Is not related to

What of these investments in physical capital would be most likely to give businesses greater access to resources?

• More machines

• More factories

• More internet access

• More land

New technology nearly always __________ productivity

• Increases

• Has no effect on

• Decreases

• Ruins

Increased productivity leads to ____________ wages for workers.

• Lower

• Higher

• The same

What type of economy is most likely to set a firm price for all consumer goods?

• Mixed

• Market

• Traditional

• Command

Scarcity is how to satisfy ______ wants with _____ resources.

• limited; limited

• unlimited; unlimited

• unlimited; limited