Fundamental Concepts (Fall 21)

What is the basic economic problem that always exists?

• Scarcity

• Production

• Consumption

• Supply

Command economies are more concerned with Equity(everyone has the same) than Freedom.

• True

• False

Which of the following is NOT one of the three basic economic questions?

• What to produce

• How to Produce

• When to Produce

• For whom to produce

Which is MOST difficult to achieve in a pure free-market or capitalist system?

• Freedom

• Efficiency

• Equity

• Growth

All of the following will help countries have economic growth EXCEPT

• Funding new renewable resources

• Increased Education

• New Technology grants

• Relying on non renewable resources

Human and physical capital is used as a productive resource. Which is an example of Human Capital?

• Hammer

• Saw

• Calculator

• CDL (Commercial Drivers License)

Barter, lottery, rationing are all examples of ?

• Increasing Productivity

• New Technology

• Allocating Resources

• Safety Net for Poor

The government can provide a "safety net" in our economy. Which is an example of a safety net?

• military

• trade regulation

• free elections

• unemployment pay