Unit 1 Review Questions

Group 1

• Centralized decision-making

• Government ownership of resources

• Private property rights

• Fixed pricing

• The ability to produce more of a good than others

• The ability to produce a good at a lower opportunity cost than others

• Producing goods using fewer resources

• Specializing in the production of a single good

• John Maynard Keynes

• Karl Marx

• Adam Smith

• Milton Friedman

• Efficient production

• Unattainable production

• Inefficient production

• Maximum production

• Goods and services

• Factors of production

• Government regulations

• Taxes

• Command economy

• Traditional economy

• Market economy

• Mixed economy

• David Ricardo

• Adam Smith

• Thomas Malthus

• John Stuart Mill

• Full employment of resources

• Underutilization of resources

• Economic decline

• Technological inefficiency

• Factors of production

• Goods and services

• Government subsidies

• Investment opportunities

• Decentralized decision-making

• Market-driven pricing

• Government control over resources

• Private ownership of capital

• Land

• Labor

• Capital

• Money

• The maximum output of two goods

• The minimum output of two goods

• The average output of two goods

• The desired output of two goods

• High levels of inequality

• Lack of innovation

• Market fluctuations

• Consumer choice

• The benefits of mercantilism

• The principles of capitalism

• The flaws of socialism

• The importance of government planning

• Economic growth

• Economic recession

• Resource depletion

• Technological regression

• Government agencies

• Supply and demand

• Corporate monopolies

• International trade agreements

• North Korea

• United States

• Cuba

• Saudi Arabia

• Government and banks

• Households and firms

• Producers and regulators

• Investors and entrepreneurs

• Adam Smith

• David Ricardo

• John Maynard Keynes

• Friedrich Hayek

• Currently unattainable production

• Efficient resource use

• Underutilized resources

• Economic stagnation

Group 2