HST 413 Unit 1 Test

All are common features to all games except:

• rules

• properties

• winners

• outcomes

Which economic term refers to making decisions about the use of resources in the production and distribution of goods?

• expanding

• reusing

• allocating

• discovering

Which is an example of a distribution decision?

• Diamonds are set aside to use for industrial drills

• A pipeline is set up to get oil from wells to refineries.

• A telephone factory is converted to make computers.

• A textile factory decides to use electric sewing machines.

Which describes a situation where the goal of security is being pursued?

• A new government program provides food to homeless people.

• A company opens a new factory and employs more workers.

• Consumers are protected against theft, fraud, and coercion.

• The government establishes a retirement program for its citizens.

Which is not a goal pursued in the game of economics?

• inflation

• freedom

• equity

• efficiency

Which best explains why goals are necessary for making allocation decisions?

• Goods and services are only meaningful once players have decided what goals to use them for.

• Goods can only be distributed to consumers once those consumers decide on their goals.

• The available resources cannot be used to pursue every goal that each individual has.

• Production goals can only be met when enough resources are allocated by the government.

Which question must be answered in order to turn resources into products?

• How should production be organized?

• How will people find jobs?

• How can security be achieved?

• How are goods and services to be distributed?

Which best explains why resources results because people always want more no matter how much is produced?

• There is scarcity that cannot be eliminated.

• Buying low and selling high is always possible.

• Voluntary exchanges will always lead to a fair price.

• Supply and demand will eventually be in balance with each other.

Which is another term for a planned economy?

• free-market system

• capitalist economy

• socialist system

• mixed economy

A mixed economy is a combination of which economic system?

• communism and socialism

• capitalism and anarchism

• free-market and command

• planned and command