Fundamentals Unit Review

How does specialization increase efficiency?

• increasing the amount of labor needed

• letting workers become experts at one specific task

• giving workers more breaks

• working employees longer hours

How are public goods funded?

• charitable donations collected by the government

• profits made by private businesses

• profits made by public companies

• taxes collected by the government

What are government programs that protect people from economic hardship?

• free rider

• positive externality

• public safety net

• public subsidy

Which of the following examines the costs and expected benefits of a choice?

• choice-benefit analysis

• cost-profit analysis

• cost-benefit analysis

• choice-profit analysis

Which of the following involves using resources to produce the maximum amount of goods and services?

• utlization

• underutilization

• efficiency

• over-efficiency

The economic term scarcity relates most directly to a situation in which

• individuals lack money needed to purchase goods.

• businesses lack customers needed to make a profit

• employees lack experience needed to earn a promotion

• manufacturers lack raw materials needed to satisfy demand

With which term is a command economic system MOST closely associated?

• enterpreneuship

• absolute advantage

• perfect competition

• governmental regulation

When governments tax polluting companies and subsidize college education, they are serving the role of

• protecting private property rights.

• resolving market failures.

• redistributing income.

• providing public goods.

An externality is a side effect of a transaction that affects whom?

• both the producer and the buyer

• someone other than the buyer or producer

• the buyer but not the producer

• the producer but not the buyer

Handicapped parking permits are an example of which allocation method?

• first come, first served

• lottery

• personal characteristics

• authority