ECON 110 Read & Interact Schiller & Gephardt Chapter 1 solutions complete answers

ECON 110 Read & Interact Schiller & Gephardt Chapter 1 solutions complete answers 

 

Compared to 1900, because of technology the modern U.S. economy has (select all that apply):

 

In his 1776 book "Wealth of Nations", Adam Smith championed            . (Enter one word in each blank.)

 

Who asserted that long-term prosperity would be possible only if the state owned the means of production and managed the economy?

 

The capitalist system (or market capitalism) relies on _______ ownership of resources.

 

In the U.S. economy which of these groups say they want more (select all that apply):

 

The abundance of goods and services we have today is largely because our factories, offices, and homes have been transformed by      .

 

In 2008-2009, Americans lost their jobs, their savings, and even their homes by the millions. This period of time is now referred to as the Great      .

 

The economist who in 1776 promoted market capitalism was:

 

Who predicted that the capitalist system of private ownership would eventually self-destruct?

 

To understand how an economy works, we have to ask and answer a lot of questions. Which of the following are the most important questions? (Check all that apply.)

 

Nations that historically adopted Marxist systems have become       (more/less) market-oriented in recent years. (Choose between more or less.)

 

Economics is concerned with how to allocate       resources to meet the unlimited wants of the members of a given society. (Use one word in the blank)

 

In the U.S. economy people today seem to think that they need twice as much       to be happy.

 

The most desired good or service that is given up in order to obtain something else is known as

 

The Great Recession occurred during

 

Economists classify the factors of       into land, labor, capital, and entrepreneurship.

 

______ resources are those for which the quantity available is less than the quantity desired.

 

To understand how an economy works, we have to ask and answer a lot of questions. Which of the following is the least important question to understand how an economy works?

 

The three main decisions that must be addressed by an economic system does not include:

 

Economics is concerned with figuring out ways to allocate        resources in the best possible way.

 

The economic question of '      (one word) to produce' is about decisions related to the mix (quantity and type) of goods and services to make available in a given economy.

 

Due to scarcity of resources, every individual, whether rich or poor, is faced with an       cost when choosing to produce or consume a good or service. (Enter only one word in the blank.)

 

What does each point on a production possibilities curve represent?

 

The basic factors of production include:

 

To economists, land includes all ______, or "gifts of nature," used in the production process.

 

______ is the notion that, in general, there is a lack of enough resources to satisfy all desired uses of those resources. (Enter only one word in the blank.)

 

Which of the following consists of the physical and mental activities that people contribute to the production of goods and services?

 

Which of the following are the three critical questions that an economic system must address?

 

Factories, networks, transportation and distribution facilities, as well as tools and machinery are all examples of ______ goods.

 

Because wants exceed resources, the economic question of '______ to produce' is related to identifying the goods and services we want most, sacrificing less desired products.

 

The factor of production related to the skill in creating products, services, and processes is known as      . (Use one word for the blank.)

 

Each point on the production possibilities curve represents the maximum ______ that can be produced in a given time period with available resources.

 

Combinations of goods that are on the production possibilities curve:

 

Select all choices from the following that would be synonymous with land to an economist.

 

A production possibilities curve shows the alternative combination:

 

______ (one word) consists of the physical actions and mental activities that people contribute to the production of goods and services.

 

For economists, ______ goods are those goods, such as machines, used to produce final consumer goods and services.

 

Assume that it takes six hours of labor time to paint a room and three hours to sand a floor. If a decision were made to spend your time sanding two floors, how many painted rooms would have been foregone?

 

The skill of creating products, services and processes is the factor of production called

 

The production possibility curve shows the output combinations that are possible. A country will choose to produce at a certain mix of output (i.e., a point on the production possibility curve) depending on

 

Points ______ the production possibilities curve are possible to produce so long as an economy uses all of its available resources and technology.

 

Between the years of 1940 and 2019, military expenditures as a percentage of total U.S. output have ranged from between _____ (at their largest) to _____ (at their smallest).

 

Which of the following illustrates the alternative combinations of goods and services that could be produced in a given time period with all available resources and technology?

 

The 9/11 terrorist attacks on New York City and Washington D.C. moved the mix of output in the U.S. toward more _______ spending.

 

If the economy's current output mix is at point CMAX and the output mix shifts to point S, the opportunity cost of this increase in military goods is equal to _______ consumer goods.

 

Assume that it takes four hours of labor time to paint a room and four hours to sand a floor. If a decision were made to spend your time sanding one floor, how many painted rooms would have been foregone?

 

In general, one specific mix of output is       for a country.

 

The production possibility curve shows the output combinations that are _______. A country will choose to produce at a certain mix of output (i.e., a point on the production possibility curve) depending on the country's _______.

 

Which of the following are investment goods?

 

From 1980 to 2019, the share of the total U.S. output devoted to national defense has ranged from _____ (at its largest) to _____ (at its smallest).

 

Military spending _______ in the three years after 9/11.

 

If the economy's current output mix is at point R and the output mix shifts to point S, the opportunity cost of this increase in military goods is equal to _______ consumer goods.

 

On which of the following does the designation of any particular mix of output for a particular society as "best" rest on?

 

Combinations of goods that fall beyond the production possibilities curve:

 

Which of the following best represents investment spending?

 

An increase in output (real GDP) is called

 

The economic question of '______ to produce' is about decisions related to the mix of factor inputs (land, labor, and capital) used to produce goods and services.

 

If the economy's current output mix is at point MMAX and the output mix shifts to point R, the opportunity cost of this increase in consumer goods is equal to _______ military goods.

 

Which points or combinations of produced goods on a production possibilities curve are not attainable with the current level of resources?

 

An expansion of production possibilities is called

 

To find an optimal method of producing goods and services is the goal of '     ' (one word) to produce.

 

Decisions related to who is going to consume the goods and services produced is the economic question of '______ to produce.'

 

The economic question of '      (one word) to produce' is about decisions related to the mix of factor inputs (land, labor, capital...) used to produce goods and services.

 

The economies of the former Soviet Union, eastern Europe, and China (who based their communist vision on the "communist ideal") prior to market reforms faced problems caused by a lack of coordination and a lack of ________.

 

If the economy's current output mix is at point S and the output mix shifts to point R, the opportunity cost of this increase in consumer goods is equal to _______ military goods.

 

Points lying ______ the production possibilities curve would represent a greater, but unachievable, level of output than that at any point on the curve.

 

Decisions such as increasing the share of military spending, how many interstate highways to build or how many Head Start classes to offer are made through ______.

 

To find an optimal method of producing goods and services is the goal of '_______' to produce.

 

The use of market prices and sales to signal desired outputs (or resource allocations) is called:

 

The economic question of '______ to produce' is about decisions related to who is going to consume the goods and services produced.

 

Market sales and prices convey messages and direct the market, much like the "invisible      ".

 

A(n) ______ problem is created when people who work hard to bake a pie feel cheated as non-workers get just as large a slice.

 

The doctrine of "leave it alone," of nonintervention by government in the market mechanism is known as

 

Who owns most property resources under central planning?

 

_______ makes decisions such as increasing the share of military spending, how many interstate highways to build or how many Head Start classes to offer.

 

In a market driven economy which process dominates the decision-making process?

 

The United States, like most nations, uses a combination of market signals and government directives to direct economic outcomes. This is commonly referred to as a _______ economy.

 

The market mechanism is the tool where _______ send a signal to producers about what mix of output consumers want.

 

An economy that uses a combination of government directives and market mechanisms to determine economic outcomes is called a(n)       economy. (Use one word for the blank.)

 

Choose the characteristics that best describe the concept of laissez-faire.

 

When comparing mixed economies, the role of the government is:

 

Choose those characteristics that best describe a central planning.

 

Which of the following are not examples of market failure?

 

In the type of economy existing in the United States and most other countries, the government _______ play a role.

 

A       failure is an imperfection in the market mechanism that prevents optimal outcomes. (Enter only one word in the blank.)

 

An economy which uses a combination of government directives and market mechanisms is known as a(n) _______.

 

When nations use a combination of government directives and market mechanisms to determine economic outcomes, it can be described as

 

Government intervention that fails to improve economic outcomes is called a:

 

Which of the following describe central planning?

 

The branch of economics that studies the decision-making process of individual workers, households, and firms (i.e., individual components of the larger economy) is known as:

 

Which of the following are examples of market failure?

 

Which of the following are economic measures considered in macroeconomic analysis?

 

A situation in which the market mechanism gives us a suboptimal economic outcome is known as

 

Economists develop theories of economic _________ to use to explain market behavior.

 

Which one of the following best clarifies the "other-things-equal" assumption?

 

Government failure occurs when government intervention improves economic outcomes.

 

The assumption that nothing else changes is known as

 

_________ is the discipline that examines either the economy as a whole or in the aggregate.

 

The president(s) who supported a less active role for the government are:

 

Which of the following are issues most explored in microeconomics?

 

Economic policies _______ conform to economic theory.

 

Economic models are highly useful in:

 

Land, labor, capital, and entrepreneurship are all scarce economic resources privately or collectively owned by members of society. When these scarce resources are used to produce goods or services, there is _____. 

 

Consider the relationship between the price of gas and the quantity of gas consumed by drivers. If we are to consider the price of gas as the only factor affecting the quantity of gas consumed, while holding other factors such as drivers' incomes and tastes and preferences irrelevant, then we are applying

 

Is "free" health care really free?

 

Which of the following define ceteris paribus?

 

The horizontal axis on a graph is often called the:

 

The president(s) who supported a more active role for the government are:

 

Given the figure, if a student studies 14 hours per week, their grade point average is equal to:

 

Economic policies:

 

The slope between points M and N is equal to _____.

 

The concept that "there is no free lunch" reflects the notion that:

 

Because there are opportunity costs to increasing health care,

 

When a curve _______, the underlying relationship between two variables has changed.

 

The vertical axis on a graph is often called the:

 

The figure shows a       (one word) curve which means the slope changes as you move along the curve.

 

Given the figure, if a student studies 10 hours per week, their grade point average is equal to:

 

Calculate the slope between points X and Y.

 

A graph is a visual representation of       data.

 

When a curve shifts, the underlying relationship between two variables has      .

 

Which of the following are true about the curve shown in the figure? (Select all that apply)

 

A graph will ______ show a cause and effect relationship.

 

Calculate the slope between points J and K.

 

Calculate the slope between points W and X.

 

Recently nations that historically have adopted Marxist systems have become ___________ (more/less) market-oriented.

 

Which of the following includes all natural resources used in the production of goods and services?

 

Points lying ______ the original production possibilities curve are unattainable with the current availability of resources and technology.

 

Market sales and prices send a signal to producers about what mix of output consumers want. This concept is known as the

 

______ is the use of market prices and sales to signal desired outputs (or resource allocations).

 

An imperfection in the market mechanism that prevents optimal outcomes is called a: