Ch. 5 What is the Economic Problem Quiz

What is the primary economic concern of a society?

• How to balance the public budget

• How to sustain economic growth

• How to acquire more economic resources

• How to achieve its economic goals

Which of the following does NOT immediately result from fluctuations between inflation and deflation?

• Unemployment rates rise

• A 'wait and see' attitude prevails

• Society's economic output slows

• Industrial Revolution

Which of the following best qualifies as a period of intensive growth?

• Industrial Revolution

• Louisiana Purchase

• European colonialism

• America's westward expansion

Which of the following is a consumer good?

• tractor

• automobile

• printing press

• welding machine

Which of the following is a capital good?

• book

• house

• medicine

• plow

From what source do firms get the funds to purchase more real capital?

• company profits

• budget cuts

• consumer savings

• fundraisers

What is the primary goal that drives the market solution to the input question?

• Lowering production costs

• Decreasing economic risk

• Increasing employment

• Satisfying demand

Which states that each person in a nation has a right to part of the nation's wealth simply by being part of the human race?

• Keynesian economics

• Egalitarian fairness

• Economic Darwinism

• Libertarian fairness

Who is the Father of Communism?

• Alfred Marshall

• Milton Friedman

• Adam Smith

• Karl Marx

The public provision of further training or education for the unemployed while they search for jobs is often known as _____.

• libertarian fairness

• welfare

• economic leveling

• workfare