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Ch. 5 What is the Economic Problem Quiz

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

What is the primary economic concern of a society?

a)

How to balance the public budget

b)

How to sustain economic growth

c)

How to acquire more economic resources

d)

How to achieve its economic goals

2.

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

a)

Unemployment rates rise

b)

A 'wait and see' attitude prevails

c)

Society's economic output slows

d)

Industrial Revolution

3.

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

a)

Industrial Revolution

b)

Louisiana Purchase

c)

European colonialism

d)

America's westward expansion

4.

Which of the following is a consumer good?

a)

tractor

b)

automobile

c)

printing press

d)

welding machine

5.

Which of the following is a capital good?

a)

book

b)

house

c)

medicine

d)

plow

6.

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

a)

company profits

b)

budget cuts

c)

consumer savings

d)

fundraisers

7.

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

a)

Lowering production costs

b)

Decreasing economic risk

c)

Increasing employment

d)

Satisfying demand

8.

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?

a)

Keynesian economics

b)

Egalitarian fairness

c)

Economic Darwinism

d)

Libertarian fairness

9.

Who is the Father of Communism?

a)

Alfred Marshall

b)

Milton Friedman

c)

Adam Smith

d)

Karl Marx

10.

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

a)

libertarian fairness

b)

welfare

c)

economic leveling

d)

workfare

11.

High unemployment often leads to higher levels of _____.

a)

crime

b)

peace

c)

productivity

d)

innovation

12.

Societies desire for price levels to remain _____.

a)

volatile

b)

unpredictable

c)

stable

d)

inflated

13.

Goods used to create other goods are called _____ goods.

a)

consumer

b)

capital

c)

government

d)

state

14.

Who decides the balance between consumer and capital goods in a command economy?

a)

The people

b)

The markets

c)

The courts

d)

The government

15.

What is the output question?

a)

What will be produced?

b)

How will it be produced?

c)

Who will receive the goods?

d)

Who will pay for the goods?

16.

What is the input question?

a)

What will be produced?

b)

How will it be produced?

c)

Who will receive the goods?

d)

Who will pay for the goods?

17.

Capital intensive production relies primarily on _____.

a)

manual labor

b)

government power

c)

automation

d)

animals

18.

Economic leveling refers to the redistribution of _____.

a)

elections

b)

capital goods

c)

votes

d)

income

19.

What is the distribution question?

a)

Who will receive the goods?

b)

What will be produced?

c)

Who will pay for the goods?

d)

How will it be produced?

20.

What is the market solution to the distribution question?

a)

Egalitarian fairness

b)

Libertarian fairness

c)

Economic leveling

d)

Government quotas