Homework answers / question archive / Homework           Chapter 1 Understanding Economics  Student name Ravon Leary   Date September 15, 2016   1

Homework           Chapter 1 Understanding Economics  Student name Ravon Leary   Date September 15, 2016   1

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Homework           Chapter 1 Understanding Economics 

Student name Ravon Leary   Date September 15, 2016

 

1. Economics is the study of how a society employs its limited resources to produce goods and services and how it distributes them among competing groups and individuals

Choose one:    __Socialism

                        __Marketing

                        __Economics

                        __Capitalism

 

2. Economist Thomas Malthius believed that Overpopulation would limit economic progress.

Choose one:   

            __The inability of workers in developing nations to compete against cheap foreign labor.

            __Depletion of gold reserves

            __The tendency of governments to levy high tax rates

            __Overpopulation

 

3.  What is the primary disadvantage of the United States having a free enterprise (capitalist) economic system?

4. Why might factory workers prefer to be in a country with a socialist economy rather than a country with a free market economy?  

 

5. In an oligopoly a few sellers dominate the market. Give an example of an industry in the United States which is an oligopoly:

6. Chevron Oil Company (a U.S. company) produces $1 billion in natural gas from 150 new wells located in Canada.  This gas is liquefied and sold to a public utility in Japan. In Japan the gas is used to produce electricity.  The electricity is sold for $2 billion. 

How much does this activity increase the GDP (gross domestic product) of the United States?  Explain your answer.

 

7. A father stays home to care for his children.

            Is he counted as being employed?        __ Yes     __no

            Is he counted as being unemployed?    __ Yes     __no

8. What is the difference between cyclical and seasonal unemployment?

9. Most industrialized countries, including the United States have a mixed economy. What is a   mixed economy?

10.  Can a capitalist country be a dictatorship?

            Yes__

            No __