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HW 1 ECON
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Questions in this quiz (20)
1In countries like _________ the command economy predominates.
- AChina and Vietnam
- BCuba and North Korea
- CSouth Africa and Kenya
- DGermany and France
2In a command economy, the __________ either makes most economic decisions itself or at least strongly influences how the decisions are made.
- Agovernment
- Bmarket
- Cfirm
- Dbusiness sector
3Because of their relatively small national economies, which of the following is most likely considered to be the most important factor for Belgium, Korea, and Canada to take full advantage of specialization?
- Adivision of labor
- Binternational trade
- Ceconomies of scale
- Dcommand economy
4In a _______________________, most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers.
- Amarket oriented economy
- Bmacroeconomy
- Cmicroeconomy
- Dcommand economy
5Which of the following is generally accepted as a valid criticism of the production of useful goods and services?
- Agovernment involvement
- Bthe black market
- Cenvironmental pollution
- Deconomic freedom
6In the first chapter of The Wealth of Nations, Smith introduces the idea of the __________, which means the way in which the work required to produce a good or service is divided into a number of tasks that are performed by different workers.
- Adivision of labor
- Binterconnected economy
- Ctask economy
- Dmodern economy
7If macroeconomics looks at the economy as a whole, it focuses on which of the following?
- Ahouseholds
- Bbusiness firms
- Cunemployed people
- Dthe division of labor
8In the ____________, households work and receive payment from firms.
- Afinancial investment market
- Bfinancial capital market
- Clabor market
- Dsavings market
9In the ______________, households receive goods and services and pay firms for them.
- Alabor market
- Bfinancial capital market
- Cgoods and services market
- Dsavings market
10Which of the following best describes a monetary policy tool?
- Ainterest rates
- Btaxes
- Chouseholds savings
- Dgovernment spending
11Which of the following best describes a fiscal policy tool?
- Agovernment spending
- Bbank lending
- Cfinancial capital markets
- Dhousehold spending
12When nations desire a healthy macroeconomy, they typically focus on three goals, one of these being:
- Abalanced budget
- Bprudent monetary policy
- Clow inflation
- Dassuring competition between firms
13The basic difference between macroeconomics and microeconomics is:
- AA. microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade.
- BB. microeconomics concentrates on the behavior of individual consumers while macroeconomics focuses on the behavior of firms.
- CC. microeconomics concentrates on the behavior of individual consumers and firms while macroeconomics focuses on the performance of the entire economy.
- DD. microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment.
14Which of the following is most likely a topic of discussion in macroeconomics?
- Aan increase in the price of a hamburger
- Ba decrease in the production of DVD players by a consumer electronics company
- Can increase in the wage rate paid to automobile workers
- Da decrease in the unemployment rate
15Which of the following statements most likely lies within the realm of microeconomics?
- AUnemployment rises during a recession and falls during an expansion.
- BAn increase in government spending will increase the aggregate demand for goods and services in the economy.
- CA rapid acceleration of the supply of money may create inflation.
- DAn increase in labor costs will increase the additional cost of producing another bus.
16Specialization:
- Aleads to greater self-sufficiency
- Bcan lead to an increase in overall production
- Callows workers to develop skills by working on a large number of tasks
- Dis always the result of an inefficient use of resources
17In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of:
- Aall consumers
- Bbuyers and sellers
- Cproducers and input suppliers
- Dproducers and government planning committees
18The circular flow diagram of economic activity is a model of the:
- Aflow of goods, services, and payments between households and firms.
- Binfluence of government on business behavior.
- Crole of unions and government in the economy.
- Dinteraction among taxes, prices, and profits.
19_____________ - a term referring to the fact that for many goods, as the level of production increases, the average cost of producing each individual unit declines.
- ASkill
- BSpecialization
- CEconomies of scale
- DDivision of Labor
20Economic models like the _____________________ are not physical models, but instead are diagrams or graphs or even mathematical equations that represent economic patterns or theories.
- Afinancial captial
- Bcircular flow diagram
- Cfinancial investment market
- Dspecialization model
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- Asayena Viengmany
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- English
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