Econ 102 - Principles of Macroeconomics » Spring 2022 » Ch 1 Reading Quiz

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Question #1
In the market for goods and services, _____________ supply the goods and services.
A.   firms
B.   households
C.   governments
D.   assembly lines
Question #2
Specialization occurs when
A.   workers constantly change tasks
B.   workers multitask
C.   workers do the same task repeatedly
D.   workers do many different tasks
Question #3
In a command economy, economic decision-making is
A.   decentralized
B.   centralized
C.   made by private owners
D.   guided by the Invisible Hand
Question #4
The Invisible Hand describes how society reaches the most efficient outcome when consumers and producers are lead by
A.   greed
B.   self-interest
C.   the government
D.   corruption
Question #5
Regulations are necessary because
A.   market failures can occur in a market economy
B.   government is inefficient
C.   government is efficient
D.   market failures do not exist in a market economy
Question #6
A key feature of a market economy is
A.   private ownership
B.   military ownership
C.   centralized decision making
D.   government ownership
Question #7
In the labor market, _______________ supply labor.
A.   households
B.   banks
C.   firms
D.   governments
Question #8
Economies of scale occurs when the average cost of producing a good ________________ as the level of production increases.
A.   decreases
B.   increases
C.   stays the same
D.   equals zero
Question #9
Economics is the study of how humans allocate _____________ resources
A.   zero
B.   abundant
C.   unlimited
D.   scarce
Question #10
When the production of a good or service is divided into separate smaller tasks performed by different people, this is called
A.   economies of scale
B.   automation
C.   division of labor
D.   specialization

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