Economics Final Part1

Which kind of decisions involving resources must producers of goods and services make?

• allocating

• renewing

• marginalizing

• satisfying

Which of these government policies pursues the economic goal of growth?

• increasing the money supply

• borrowing money using bonds

• keeping taxes low

• protecting consumers from fraud

What is the purpose of a free-market system

• to protect the conditions that enable specialization

• to stimulate the growth of the gross domestic product

• to raise the standard of living for everyone in the country

• to allow consumers and producers to make their own decisions

Which of these is required to have a free-market system?

• Laws against theft, fraud, and coercion

• government provisions of public goods

• tight control over the money supply

• sustainable development

How does the assembly line benefit the economy?

• It enables low taxation

• it increases productivity

• it keeps distribution cost low

• it provides maximum utility

How does the use of cargo containers benefit the economy?

• by decreasing pollution

• by preventing protective tariffs

• by keeping distribution cost low

• by generating renewable energy

Which is a producer's goal in using market research

• find out what consumers want to buy

• drive other companies out of business

• make better investment decisions

• keep the cost of production low

Which does utility measure?

• value

• usefulness

• money

• satisfaction

Utility refers to the satisfaction a consumer gets from a purchase.

• True

• False

A consumer who is reluctant to take chances has a high level of risk aversion

• True

• False