D089 – Quiz-Answered 100% Correct

A property owner has 500 acres of flat land and has been approached by two different businesses. One business wants to drill for oil, and the other wants to raise cattle - ANSWER-What to produce? A well-established company has been producing goods and wants to create a new line of production. The company needs to decide whether it should use a current factory or find a new location. - ANSWER-How to produce it? To address environmental concerns, Congress is considering a bill that would increase the price of electricity generated by coal. Increasing the price of electricity creates a problem for low-income household - ANSWER-For whom to produce? Which scenario matches Principle 4 of economics - people respond to incentives? - ANSWER-A sales manager offers a higher percentage of commission for a product that is not selling well Principle 5: Trade can leave everyone in a better position - ANSWER-A farmer is really good at growing corn and exchanges the corn for meat and supplies Principle 6: Markets are a sound method of organizing economic activity - ANSWER-Multiple producers and consumers exchange goods and services Principle 7: Governments sometimes have the ability to better market outcomes - ANSWER-Companies face regulation when they create a monopoly in their industry What is a consequence of a government printing more money? - ANSWER-Decreased Unemployment - printing more money causes inflation and can lead ot more jobs What is a benefit of using a traditional economic system? - ANSWER-Everyone knows their role in the market Which characteristic is associated with a command economy? - ANSWER-Competition is limited What is an advantage of a market economy? - ANSWER-Innovation is encouraged and rewarded What is a disadvantage of a mixed economic system? - ANSWER-Freedom of choice can fluctuate from too much or too little Which economic framework would a student use to study inflation in a country over past years? - ANSWER-Macroeconomics