Econ 12 practice quiz sept 25

What basic problem in economics necessitates that people make decisions about how resources are allocated?

• Scarcity
• Opportunity Cost
• Inflation
• Surplus

How is allocation defined in the context of economics?

• The process of distributing or giving out shares from a total amount
• The total measure of a country's wealth over time
• The legal framework governing trade policy
• The motivation required for efficient labor

Which resource allocation method motivates destructive competition because a person's wealth is destroyed as people fight over it?

• Rule of Force
• First Come-First Serve
• Markets
• Government Decisions

Under the Rule of Force allocation method, who acquires desirable products?

• The meanest and strongest who simply take what they want
• Those who wait the longest in line
• Those who influence politicians with lobbying
• Those with the most pleasant personalities

Which allocation method involves people competing by waiting in line, favoring those who wait the longest?

• First Come-First Serve
• Rule of Force
• Markets
• Personal Characteristics

A drawback of the First Come-First Serve allocation method is that it fails to motivate people to do what?

• Work together to produce more of a valued product
• Compete by being willing to pay the most
• Organize labor using technology
• Influence allocation through political donations

Government distribution is typically justified as a way of making sure products go to whom?

• Those who need or most deserve them
• Those best able to compete in the market
• Those who produce the maximum potential output
• Those with the highest GDP Per Capita

When competing for government distribution, people may hire lawyers and lobbyists to influence which individuals?

• Politicians who set the rules
• Consumers willing to pay the most
• Firms seeking higher profits
• Workers seeking better jobs

In a market-based economy, such as Canada, how are most resources and goods and services allocated?

• By price
• By government mandate
• By the strongest individual
• By alphabetical order

What does much of economics study regarding market competition?

• How market competition promotes productive cooperation
• How government can eliminate scarcity
• How the rule of force benefits the weakest
• How political competition produces wealth