Economics Ch. 5

What is the primary economic concern of a society?

• How to balance the public budget
• How to achieve its economic goals
• How to sustain economic growth
• How to acquire more economic resources

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

• People cannot make economic forecasts
• A "wait and see" attitude prevails
• Society's economic output slows
• Unemployment rates rise

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