Economics Unit One

Which is not a feature common to all games?

• properties

• players

• teams

• rules

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 production decision?

• A gas station is expanded to accommodate more cars at once.

• Crude oil is set aside to refine into gasoline for cars.

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

• An assembly line is used to build cars.

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

• The government establishes a retirement program for its citizens.

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

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

• A new government program provides food to homeless people.

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 asked about the use of resources in an economic system?

• What allocation of resources will provide the fastest growth?

• What is the most effective allocation of resources?

• What is the most secure allocation of resources?

• What is the fairest allocation of resources?

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.

A mixed economy is a combination of which economic system?

• communism and socialism

• capitalism and anarchism

• free-market and command

• planned and command

Which characterizes the free-market system as consumers influence producers and producers influence consumers?

• a circular flow of influences

• a built-in process of growth

• a tendency toward equality

• only two kinds of players