Unit 1 Test Review

Which is not a feature common to all games?

• outcomes

• winners

• players

• rules

Economics concerns the allocation of resources for which processes?

• production and distribution

• consumption and destruction

• innovation and efficiency

• expansion and stagnation

What is an example of a distribution decision?

• Diamonds are set aside to use for industrial drills.

• A pipeline is set up to get oil from wells to refineries.

• A telephone factory is converted to make computers.

• A textile factory decides to use electric sewing machines.

Which statement best describes an efficient outcome?

• A government program allocates food to the needy.

• A car is designed to waste as little fuel as possible.

• Consumers are given the widest range of choice possible.

• A company sets up retirement program for its employees.

What is not a goal pursued in the game of economics?

• inflation

• freedom

• equity

• efficiency

Why are goals necessary for making allocation decisions?

• Goods and services are only meaningful once players have decided what goals to use them for.

• Goods can only be distributed to consumers once those consumers decide on their goals.

• The available resources cannot be used to pursue every goal that each individual has.

• Production goals can only be met when enough resources are allocated by the government.

Which question must be asked about the use of resources in an economic system?

• What allocation of resources will provide the fastest growth?

• What is the most effective allocation of resources?

• What is the most secure allocation of resources?

• What is the fairest allocation of resources?

Which best explains the result of people always wanting more no matter how much is produced?

• There is scarcity that cannot be eliminated.

• Buying low and selling high is always possible.

• Voluntary exchanges will always lead to a fair price.

• Supply and demand will eventually be in balance with each other.

A capitalist country has which economic system?

• free-market

• command

• planned

• socialist

Which characterizes the free-market system as consumers influence producers and producers influence consumers?

• a circular flow of influences

• a built-in process of growth

• a tendency toward equality

• only two kinds of players