Abeka Economic – Work and Prosperity Test 6 Practice

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• What function of money allows people to compare the worth of one good with that of another?
• What is the role of profits in a market economy?
• What is the primary purpose of a central bank in a modern economy?
• The Diamond-Water Paradox attribution goes to which economist?
• What usually results when a government fixes a good's price above its equilibrium price?
• What is the concept of "marginal utility" and how does it influence consumer choice?
• Which of the following is NOT one of the three items that determine how much an investment grows?
• What term describes the value of all finished goods and services produced within a country?
• Which statement describes what a move along the production possibilities frontier represents?
• Which outcome would result from an increase in the demand for workers?
• Why is diversification important in saving and investment?
• Which term describes an intangible output that people expect to pay for?
• Who is the founder of modern economics and author of The Wealth of Nations?
• Mechanism that allows people to exchange goods.
• Which view regards the entire world as one giant community that should be unified politically and economically?
• In international trade, what is the core idea behind comparative advantage?
• How does consumer demand influence innovation?
• Which law was one of the first antitrust laws enacted in the United States?
• Which description best characterizes a traditional economic system?
• Which statement best describes an economy operating inside the PPC curve?
• Define opportunity cost and give an example.
• An economy operating inside the PPC curve is operating:
• How does entrepreneurship contribute to economic growth?
• Which statement best describes how technology influences productivity and economic prosperity?
• Depreciation of a country's currency: what is a likely effect on inflation and trade?
• Which monetary instrument is legal tender that is backed only by government promise?
• If the price doubles and causes consumers to cut in half the amount bought, the demand is?
• Which industrialist is commonly linked with standardized parts and the assembly line?
• Which economic theory argues that reducing taxes makes more money available for private investment, thereby increasing productivity?
• Large, complex organizations composed of appointed officials and numerous departments.
• Which economic system is characterized by government ownership of most resources and a planned economy?
• An economy operating inside the PPC is typically associated with
• Which statement about savings is NOT a typical purpose?
• What is the main reason for using specialization and division of labor in production?
• Which of the following best defines physical capital?
• Which market model provides differentiated products?
• What is the difference between renewable and nonrenewable resources, and why does it matter economically?
• Who is most associated with monetarism in macroeconomic theory?
• Which term describes agreements between two nations that reduce trade barriers between them?
• What is the main goal of labor unions?
• If consumer income rises for a normal good, what happens to demand?
• What is a budget deficit, and how can it affect national prosperity?
• Which statement best explains how specialization leads to greater total output?
• Which economic approach advocates massive public spending during recessions?
• An oven used to bake bread in a bakery is an example of which type of good?
• Why is sound economic policy important for a flourishing society?
• The Phillips Curve describes what kind of relationship in the short run between inflation and unemployment?
• The concept of the invisible hand is associated with which economist?
• Why are wages typically higher for skilled labor than for unskilled labor?
• When the division of labor is carried past the point of maximum efficiency, the result is?
• What term refers to the total cost, i.e., the sum of all the factors of production used to make goods?
• Which industrialist is commonly linked with standardized parts and the assembly line?
• Which of the following is an example of a capital good?
• Entrepreneurship involves which activity, and what are common barriers?
• Which concept describes the value of the best alternative forgone when making a choice?
• Which three items determine how much an investment grows?
• Which market structure is characterized by a few firms holding market power?
• If a price ceiling is set below the equilibrium price, what is a common market outcome?
• The term for trade agreements between two countries that promote commerce is
• One of the safest ways to invest in a corporation.
• Which branch studies individual markets and decisions, not the whole economy?
• Which thinker authored the work Das Kapital?
• What term refers to property owned by an individual that can be used to secure a loan?
• The ability of an entity to produce a good at an opportunity cost that is lower than that of another producer is known as what?
• What is the role of government in a free-enterprise economy?
• Which of the following is NOT a basic component of capitalism?
• A flourishing society typically offers which opportunities?
• Which U.S. president is associated with Reagan's economic approach?
• What distinguishes fixed costs from variable costs?
• What determines the market price of a good in a competitive market?
• Which organization maintains a policy of most-favoured nation?
• What term is defined as anything that is generally accepted as a means of payment?
• Name the French group whose members were among the earliest influential advocates of laissez-faire economics.
• In business cycle terms, what term describes the highest point?
• Which organization was created to maintain international peace?
• Which retirement account is funded with after-tax dollars and allows tax-free withdrawals of qualified earnings?
• Which term is generally accepted as a means of payment in an economy?
• What is a likely outcome of imposing a price ceiling below the market-clearing price?
• Which French group is known for early advocacy of laissez-faire economics?
• Which economic doctrine advocates stockpiling gold and silver in the state's treasury?
• What does moving along the production possibilities frontier illustrate?
• Supply-side economics is most associated with which U.S. president?
• Which term describes trading a stock based on nonpublic information?
• Separates the work to be performed into individualized tasks.
• The system for the production, distribution, and consumption of goods within a country is called what?
• System for the production, distribution, and consumption of goods?
• Scarcity and choice: which statement best describes the effect of scarcity on households?
• How does government taxation affect economic well-being?
• How do foreign exchange rates affect trade and investment?
• The result when too much money is in circulation?
• How does inflation affect savers and borrowers differently?
• Which legal process orders part of a borrower's wages to be paid directly to a creditor?
• If the demand for workers increases, wages:
• The missing word in the sentence 'An increase in the ? of workers increases wages' is:
• The New Deal refers to a series of policies implemented under which president?
• When the price of a good falls, the quantity supplied tends to?
• What price describes the point at which the quantity supplied equals the quantity demanded?
• What is the difference in price-setting between perfect competition and a monopoly?
• Which institution was established after WWII to provide capital needed to rebuild war-torn Japan and Western Europe?
• Which of the following is a characteristic of public goods?
• What does the slope of a production possibilities frontier represent?
• What do consumer rights typically protect buyers from in a market?
• In consumer choice, how should a consumer allocate spending?
• What term describes the phase of the business cycle in which industries increase production?
• What term describes investing resources today to gain in the future?
• The idea of comparative advantage is associated with which economist?
• What term describes the exclusive power of a state to regulate its internal affairs without foreign interference?
• What organization was originally established to monitor currency exchange?
• Tariffs can reduce overall welfare because:
• Which economic principle explains why a country should specialize in producing goods for which it has the lowest opportunity cost relative to other countries?
• The monopoly created by copyright on a literary work is an example of which type of monopoly?
• A monopoly created by a copyright on a novel is considered what type of monopoly?
• Which economic system bases production on customs and habits?
• What is a market failure and which of the following is a common example?
• A good that is used to produce other goods or services is best described as which?
• What does scarcity mean in economic decision making?
• Which statement best defines economies of scale?
• In a loan agreement, what is used as collateral to secure the loan?
• What is the official currency of the European Union?
• Explain the difference between monetary policy and fiscal policy.
• Which practice involves buying or selling a stock based on information that has not been made public?
• Why is it important to save and invest for future prosperity?
• Which economist is associated with the Physiocracy school?
• If demand increases and supply is unchanged, what happens to price and quantity?
• Which term describes a country's production focus on goods for which it has an advantage?
• Which of the following is an example of a consumer good?
• Which savings plan is characterized by earnings not being taxed?
• In a market economy, what happens when the price of a good rises due to greater demand?
• Money and saving: holding money helps consumers to...
• A market structure with many buyers and sellers, freedom of entry, and identical products describes which model?
• Used to determine how much of a good to buy or sell.
• What type of income tax system is used by the United States?
• In a competitive market, what is the role of profits in guiding resources?
• Which early U.S. law was aimed at reducing the power of large corporations and promoting competition?
• The total amount invested in the production of a good is called what?
• Which organization is responsible for regulating the money supply in the United States?
• Which trait refers to doing quality work efficiently?
• The practice that forces a consumer to buy one product to obtain another is called?
• Which principle states that bad money drives out good money?
• Wages rise when the demand for workers increases because
• Population growth will cause a change in which market variable?
• Which economic system is regulated by the public sector?
• Which statement best describes the PPC boundary?
• Which economic system is guided by the choices made by the private sector?
• Which statement best describes what the PPC shows?
• Which economist warned that population growth would outpace resources?
• The American system of mandatory social insurance is commonly called what?
• Which market model is dominated by only a few firms?
• Regulation intended to protect workers often has what effect on firms?
• How can sound personal finance align with biblical principles of stewardship?
• What is the value of the best alternative forgone when choosing?
• How do price signals help allocate resources efficiently?
• Which market model results when there is only one supplier of a good with no substitute?
• Which statement is supported by the material?
• In a free enterprise system, decisions about production are primarily driven by which sector?
• How do consumers influence markets through consumer sovereignty?
• Besides utility, what determines the value of a good in a consumer's mind?
• Which institution, established after World War II, provides long-term loans for reconstruction and development?
• How do competitive markets promote efficient production?
• The branch that studies specific components of the economy, like individual markets, is?
• What is the currency used by many European Union member states for cross-border trade?
• Which principle states that the added satisfaction from each extra unit declines as more units are consumed?
• How does inflation affect borrowers when wages rise with inflation?
• The law stating that bad money drives out good is named after which person?
• Which economic ideology can gradually erode foundational freedoms in an economy without most people realizing it?
• What term describes an account that guarantees a fixed interest rate and has a specified maturity date?
• What is the difference between private property and public property in a free-market system?
• How do human capital and physical capital contribute to prosperity?
• Which economic system is based upon public & governmental control of the production & distribution of nearly all national resources?
• Which German city was divided during the Cold War?
• Population growth affects which curve in a market?
• Tariffs tend to have which of the following effects on consumers and domestic producers?
• What tends to decrease when the supply of a good increases?
• The Diamond-Water Paradox is attributed to which economist?
• Which economist is closely associated with monetarism?
• Which of the following is a basic function of money?
• Which statement best describes the American system of mass production's core features?
• Inflation caused by demand exceeding supply is known as which type?
• What principle states that as more of a good is consumed, the additional satisfaction declines?
• Who authored the foundational work Das Kapital?
• The relationship between a good's price and the amount that people are willing to buy is called what?
• Which statement best describes how taxation affects public goods funding and economic efficiency?
• What phrase best describes the government's primary responsibilities?
• Which of the following describes common goals or measures pursued in a free enterprise economy?
• Which term describes the belief in uniting nations into a single global political and economic community?
• What is a checking account at a bank or other depository institution commonly called?
• Which banking system allows banks to hold only a fraction of deposits in reserve?
• Which figure is associated with the Physiocracy school?
• Being on the PPC boundary implies
• Which option lists the four factors of production?
• Which of the following describes a goal commonly pursued in a free market economy?
• In a fractional reserve banking system, which action by banks creates new money?
• What economic concept describes a consequence of an activity that affects others not involved in the transaction?
• What is an economy in which the government makes most decisions called?
• Which factors influence wage levels?
• The circular flow model shows interactions among which groups, and through which types of flows?
• A piece of equipment used in production, such as an oven in a bakery, is classified as which type of good?
• What is the role of innovation in markets?
• Which economist is commonly nicknamed the 'prophet of doom'?
• The system that controls the money supply of the United States?
• In a monopoly, what mainly determines the price of the good?
• What is a budget line in personal finance?
• Which outcome is consistent with an increase in the demand for workers?
• Which term describes the spillover effects of a transaction on third parties?
• Which statement best describes the difference between needs and wants and how they influence consumption?
• Which of the following lists the four factors of production?
• Which economic doctrine advocates stockpiling gold and silver and maintaining a favorable balance of trade?
• How can entrepreneurship drive economic growth?
• Which market structure typically features many sellers offering differentiated products and some price control?
• Which market model results in firms that are price takers?
• In the circular flow model, which type of flow goes from households to firms as they supply labor and other resources?
• The claim that 'an economy inside the PPC is inefficient' is
• What is the total value of all final goods and services produced within a country in a year called?
• The PPC is used to illustrate trade-offs between
• Which agreement among the U.S., Canada, and Mexico encouraged free trade?
• Which is listed as an advantage of an S Corporation?
• Which treaty was designed to require nations to buy allowances of 'carbon credits' to decrease CO2 and reduce greenhouse emissions?
• Which concept composes the American system of mass production?
• Intangible good produced for which people expect to pay.
• Which market structure is described as many firms offering differentiated products with relatively easy entry?
• Why are property rights essential for economic prosperity?
• What is the role of price signals in competitive markets?
• Global organization created to maintain international peace.
• If the economy moves toward the PPC boundary, it indicates an increase in
• What term means committing resources now with expectation of future gain?