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