In a market economy, economic activity is guided by what?
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The president
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Self-interest and prices
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The government
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Central planners
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Corporations
The Production Possibility Frontier (PPF) of a nation shows what?
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The prices of products
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How much production takes place with the existing resources
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How much do people consume
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All of the above
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The population
The outward shift of the PPF means what?
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Increased size of the government
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More equality among citizens
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Economic growth
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More consumption
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All of the above
The opportunity cost of an item is?
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The dollar value of them
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Usually less than the dollar value of the item
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All of the above
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What you give up to get that item
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The number of hours needed to earn money to buy the item
The phenomenon of scarcity stems from the fact that?
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Governments restrict the production of too many goods and services
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Resources are limited
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People are greedy
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Wealthy people consume disproportionate quantities of goods and services
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Most economies' production methods are not very good
What is the benefit that is provided by Social Security?
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Medical care for poor
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Cash payments to injured workers
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Money for when elderly retire
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None of these
In what type of economy does the government make all of the decisions?
Centrally Planned
Laissez-Faire
Command
Socialist
Which of the following would you expect a safety net from the government to help with?
Low Income
Natural disasters
Mental Illness
Car Accident
What is the incentive for manufacturers selling a product?
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Trying to make the customer as happy as possible
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Making a profit for what they sell
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Trying to eliminate competition
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All of the above
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Trying to be the most popular store
Which of the following is NOT a public good?
Road
Restaurant
Museum
National Park
