Chapter 10 Exam

Which is an example of a human resource?

• water

• money

• abilities

• factories

Which term completes the list: traditional economy, command-oriented economy, Market-based economy, ________ economy

• mixed

• industrial

• controlled

• agricultural

What's the best title for this description?

- Mismatch between production and society's needs

- Little incentive for high quality or innovation.

- Dishonesty and corruption among decision makers.

• Traits of a traditional economy

• Principles of the Free Enterprise System

• Disadvantages of a Command Economy

• The need for gov't regulations

Which is a basic economic question?

• How can goods and services be improved?

• For whom will goods and services be produces?

• What do consumers do with the goods and services produced?

• How much tax should there be on goods and services produced?

Which statement describes the problem created by scarcity?

• Economic decisions result in losing the costs of other opportunities

• People have wants and needs that cannot be fulfilled

• Producers must decide between making goods and providing services

• Innovations and technology make more efficient use of resources

Which is an example of PRIVATE property?

• An area for music in a city park

• An idea for a movie script

• A government-run library

• A cemetery for veterans

Which scenario describes consumer sovereignty influencing a company to stop making a product?

• The materials to make the product become increasingly scarce.

• The company still has leftover product after reducing its prices.

• One of the product plants in closed down following a workers' strike.

• Many newspapers refuse to run ads for the product.

Why might a supporter of laissez-faire economics oppose a tax on soda?

• It could compromise consumer sovereignty.

• It might lead to higher taxes on other goods.

• It could be an effort to enforce healthier choices.

• It might support the belief that sugary drinks are harmful.

In the US, the government most likely would become involved with which situation?

• A business hires someone who's constantly late for work.

• A business hires an employee for a high level position, but who lied on his application.

• A contractor only completes half the work and wants to get paid more to complete the job.

• A homeowner hires a painter but refuses to pay for the sealant. 6 months later the paint cracks prematurely.

Which statement best explains a business' actions based on the following business plan:

- work with the manufacturer to cut down production cost

- invest in advertising to reach a wider audience.

- design products that meet the consumers' tastes.

• In a market economy, companies rely on low sales to earn tax breaks.

• In a market economy, the gov't passes laws that keep businesses from failing.

• In a market economy, profit motive inspires businesses to improve production and sales.

• In a market economy, businesses must have a strategy for the gov't to review.