1.13: The Game of Economics

Which is not a feature common to all games?

• outcomes

• rules

• players

• winners

What is an example of a production decision?

• An assembly line is used to build cars.

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

• A gas station is expanded to accommodate more cars at once.

• Crude oil is set aside to refine into gasoline for cars.

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

• security

• efficiency

• growth

• stagnation

Why are goals necessary for making allocation decisions?

• 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.

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

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

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

• What is the fairest allocation of resources?

• What is the most secure allocation of resources?

• What allocation of resources will provide the fastest growth?

• What is the most effective allocation of resources?

Which is another term for a planned economy?

• mixed economy

• capitalist economy

• free-market system

• socialist system

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

• a built-in process of growth

• only two kinds of players

• a circular flow of influences

• a tendency toward equality

Which government action is necessary to guarantee the conditions required for a free-market system?

• decisions allocating natural resources

• low taxes on producers' profits

• laws against theft, fraud, and coercion

• protection of market forces

What is most important in a free-market system?

• Security from poverty

• Government regulation

• Protection of private property rights

• Central planning

Which goal does the government pursue in a socialist economic system?

• equity

• efficiency

• security

• growth