VAVA First Semester Exam Review

What are the objects that fulfill the needs and wants of consumers?

• Goods

• Transactions

• Resources

• Goals

Which of these government policies pursues the economic goal of equity?

• protecting consumers from fraud

• providing welfare benefits

• preventing monopolies

• ending a recession

What is another term for a free-market system?

• interventionism

• communism

• capitalism

• socialism

Which describes a command economy?

• designed to protect private property

• run by the government

• organized by producers and consumers

• uses only free-market principles

What is the purpose of a free-market system?

• to allow consumers and producers to make their own decisions

• to raise the standard of living for everyone in the country

• to protect the conditions that enable specialization

• to stimulate the growth of the gross domestic product

Which is one way that technology can improve productivity?

• Machines replace workers, reducing production costs.

• Powerful machines are less dangerous to industrial workers.

• Better methods of production allow workers to earn higher wages.

• The assembly line enables more workers to participate in the production process.

Why do consumers benefit directly from greater productivity?

• Older devices are replaced with new versions more and more quickly.

• Fewer workers are needed to produce more goods and services

• Goods and services are produced faster and can be sold more cheaply.

• The amount of natural resources needed to sustain human wants and needs decreases.

Which describes the economic role played by a producer?

• uses goods and services

• provides goods and services

• creates goods and services

• invents new technology

Which best describes the role that workers play in the economy?

• make decisions based upon the business model

• deliver goods and services to consumers

• invent new technologies

• act as both consumers and producers

Which describes risk aversion?

• the personal satisfaction gained from consumption

• weighing the extra costs and benefits of one more unit

• reluctance for taking changes when making investments

• buying goods according to what one wants or needs