Economics Chapter 2 Trivia Questions!
Welcome to chapter two of our ongoing analysis on the social science of economics, the study which looks at how economic agents behave and interact with one another, and how economies work in general. There are some key questions you need to be able to answer if you want to understand economics to the full extent, and in the following quiz, we’re going to look at what they are!
- 1.
Each society determines who will consume what is produced based on
- A.
Its unique combination of social values and goals
- B.
Economic equality
Correct Answer
A. Its unique combination of social values and goalsExplanation
Each society has its own set of social values and goals, which shape how resources are allocated and distributed. These values and goals determine who gets to consume what is produced within that society. Economic equality may be one factor that influences resource distribution, but it is not the sole determinant. The combination of social values and goals is what ultimately determines how resources are allocated in a society.Rate this question:
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- 2.
To improve its standard of living, a nation's economy must
- A.
Grow through innovation
- B.
All the central government to make economic decisions
Correct Answer
A. Grow through innovationExplanation
In order to improve its standard of living, a nation's economy must grow through innovation. This means that the nation needs to continuously develop new ideas, technologies, and methods to enhance productivity, efficiency, and overall economic performance. Innovation drives economic growth by attracting investments, creating new industries and job opportunities, and increasing the competitiveness of the nation in the global market. It leads to higher incomes, improved infrastructure, better education, healthcare, and overall well-being for the citizens. Therefore, innovation is crucial for a nation to enhance its standard of living.Rate this question:
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- 3.
Traditional economies are usually
- A.
Large, widespread communities that are able to deal effectively with environmental disaster
- B.
Small, close communities that avoid change and new technology
Correct Answer
B. Small, close communities that avoid change and new technologyExplanation
Traditional economies are typically characterized by small, close-knit communities that resist change and new technology. These communities often prioritize preserving their cultural and social traditions over embracing modern advancements. This resistance to change helps maintain stability and continuity within the community, but it may also hinder economic growth and development. Additionally, the close-knit nature of these communities allows for effective communication and cooperation in times of environmental disaster, enabling them to deal with such challenges more efficiently.Rate this question:
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- 4.
An economy in which only the government makes economic decisions is a
- A.
Traditional economy
- B.
Centrally planned economy
Correct Answer
B. Centrally planned economyExplanation
A centrally planned economy is an economy in which the government has complete control over economic decisions. In this system, the government determines what goods and services are produced, how they are produced, and who receives them. The government also controls the allocation of resources and sets prices for goods and services. This type of economy is often associated with socialist or communist countries, where the government aims to achieve specific social and economic goals through central planning and regulation.Rate this question:
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- 5.
Pure market economies always
- A.
Base economic decisions on exchange, or trade
- B.
Divide work along gender lines
Correct Answer
A. Base economic decisions on exchange, or tradeExplanation
Pure market economies are characterized by the absence of government intervention in economic activities. In such economies, economic decisions are primarily driven by the forces of supply and demand in the market. This means that individuals and businesses make decisions based on the exchange or trade of goods and services. They determine what to produce, how much to produce, and at what price to sell based on market signals and the pursuit of profit. Therefore, the statement that pure market economies always base economic decisions on exchange or trade is accurate.Rate this question:
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Current Version
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Nov 16, 2023Quiz Edited by
ProProfs Editorial Team -
Nov 19, 2012Quiz Created by
Lmckinney
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