WorksheetsEcon Ch 5
Total questions: 36
Worksheet time: 1hrs 6mins
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
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
Goods used to create other goods are called _____ goods.
consumer
capital
government
state
Who decides the balance between consumer and capital goods in a command economy?
The people
The markets
The courts
The government
What is the output question?
What will be produced?
How will it be produced?
Who will receive the goods?
Who will pay for the goods?
What is the input question?
What will be produced?
How will it be produced?
Who will receive the goods?
Who will pay for the goods?
What is the distribution question?
Who will receive the goods?
What will be produced?
Who will pay for the goods?
How will it be produced?
What is the market solution to the distribution question?
Egalitarian fairness
Libertarian fairness
Economic leveling
Government quotas
In the former Soviet Union, consumers had to wait in long lines to buy everyday items like bread. They did not have many choices and the government controlled factories. In what type of economy did they live?
Market
Mixed
Traditional
Command
In a market economy, goods and services were privately owned businesses.
True
False
In a market economy, the basic economic decisions are driven by?
Governments
individuals
business owners
banks
What is the primary concern of a society?
How to balance the public budget
How to sustain economic growth
How to best achieve its economic goals
How to acquire more economic resources
Which of the following does NOT immediately result from fluctuations between inflation and deflation?
A "wait and see attitude prevails."
Unemployment rates rise.
People cannot make economic forecasts.
Society's economic output slows.
Which of the following best qualifies as a period of intensive growth?
Industrial Revolution
Louisiana Purchase
Westward Expansion
European Colonialism
What is meant by the consumer goods/capital goods tradeoff?
Nations should trade both consumer goods and capital goods internationally.
The same business cannot produce both capital goods and consumer goods.
Every business must sell its capital goods for consumer goods, and vice versa.
Businesses that produce consumer goods cause the production of capital goods to decrease, and vice versa.
Which of the following is a consumer good?
A tractor
A welding machine
An automobile
A printing press
Which of the following is a capital good?
Medicine
A plow
A book
A house
What is the market solution to the output question?
Each individual decides the consumer goods/capital goods tradeoff.
Governmental leaders make only emergency decisions in the consumer goods/capital goods tradeoff.
Governmental committees make all major decisions concerning the labor intensive/capital intensive ratio.
Individual firms determine the labor intensive/capital intensive ratio.
What is the central function performed by the market interest rate?
It allows financial markets to profit from economic downturns.
It forces producers to give in to demand and consumers to profit from supply.
It regulates the flow of money from households to businesses via financial markets.
It reflects consumer confidence in the economy.
From what source do firms get the funds to purchase more real capital?
Budget cuts
Company profits
Fundraisers
Consumer savings
What is the command solution to the input question?
The interest rate decides the consumer goods/capital goods tradeoff.
Policymakers choose the labor/capital ratio.
Individual firms choose the labor/capital ratio.
Governmental leaders decide the consumer goods/capital goods tradeoff.
The primary goal that drives the market solution to the input question is...
Increasing employment levels
Decreasing economic risk
Satisfying consumer demand
Lowering production costs
What viewpoint states that each person in a nation has a right to a part of that nation's wealth simply by being part of the human race?
Egalitarian fairness
Economic Darwinism
Libertarian fairness
Keynesian economics
The public provision of further training or education for the unemployed while they search for jobs is often known as...
Welfare
Workfare
Safety-net egalitarianism
Economic leveling
Who is the Father of Communism?
Milton Friedman
Adam Smith
Karl Marx
Alfred Marshall
Which of the following is NOT true of Communism as a philosophy?
It regards class conflict as unsolvable.
It was initially widely rejected in Europe.
It can easily be exploited by ambitious men.
It seeks to perfect society by human effort.
Immigration can assist in economic growth.
True
False
Invention is a mark of extensive growth.
True
False
When interest rates rise above the market interest rate, spending on consumer goods is discouraged and saving is encouraged.
True
False
Low unemployment is always a sign of economic prosperity.
True
False
