Economics Pop Quiz 2

What three things do we, as a society, need to figure out? Choose all that apply

• What will we produce?

• How many of us are there?

• How will we produce it?

• Who gets it?

• How much does it cost?

What are the factors of production (the major inputs required to produce stuff)? Choose all that apply

• capital

• labor

• land

• businesses

In a _______ economy, the government completely controls everything about the economy

• command

• controlled

• efficient

• invasive

The "circular flow model" involves the _____ market and the _____ resource market.

• product

• resource

• free

• command

Why must people analyze their economic choices?

• People have limited resources.

• People have unlimited wants.

• Benefits always outweigh costs.

• Costs always outweigh benefits.

Which of the following best defines specialization?

• division of labor

• interchangeable parts

• mass consumerism

• mechanizaion

According to Adam Smith, what makes countries better off economically?

• trade

• war

• education

• mass production

What would point "x" allow the reader of the map to know?

• their production is inefficient

• their set price is too low

• they have met their targeted production

• they need to produce less of the product

What does "mutually beneficial" mean?

• The trade helps both parties or nations involved.

• The trading nation exploits the purchasing nation.

• The purchase is intended to promote the general welfare.

• International commerce prevents global wars.

Why must trade be "mutually beneficial"?

• The parties involved would not engage in the trade if it did not benefit them.

• If it were not, a nation would declare war on the other nation.

• Trade can only benefit one country not both.

• Beneficial trade allows for a global economy.