Economics Review True or False Quiz

Dark Age Period in West European History

• The 'Dark Age' refers to the early medieval period from approximately the 5th to the 10th century in Western Europe.
• Characterized by societal decline, political fragmentation, and a reduction in cultural and economic activity following the fall of the Western Roman Empire.

Reasons for the Term 'Dark Ages'

• Called 'Dark Ages' due to perceived cultural stagnation and lack of historical records.
• The term implies ignorance, minimizing the achievements and developments that did occur during this time.

Invasions of the Western Roman Empire

• The Western Roman Empire faced invasions from various tribes, including the Visigoths, Ostrogoths, Vandals, and Huns in the 5th century AD.
• These invasions contributed to the empire's decline and fragmentation.

Socio-Economic and Political Order of the Dark Ages

• A feudal system emerged, characterized by land ownership and a hierarchy of lords and vassals.
• Economic activity was localized, often based on agriculture, with limited trade.

Ruling Class Group During the Dark Ages

• Nobility comprised the ruling class, with lords holding power over vassals and serfs.
• Land was the primary source of wealth and power.

Feudal System Relationships

• Feudalism establishes a relationship of obligations and protection between a higher lord and a lower lord, forming a hierarchy of power.

Description of Economics

• Economics can be described as the study of how societies allocate scarce resources to meet unlimited wants.
• It encompasses the production, distribution, and consumption of goods and services.

Principle of Opportunity Cost

• The concept of opportunity cost is based on the principle that choices involve trade-offs; selecting one option requires forgoing another.

Production Possibility Frontier (PPF)

• A point lying outside the production possibility frontier represents an unattainable level of production with current resources.
• It indicates a scenario where desired outputs exceed available inputs.

Achieving Economic Growth

• Economic growth can be achieved through investments in human capital, innovation, technology, and improving resource allocation.
• Policies promoting education, infrastructure, and efficient markets encourage growth.

Type of Economy with Consumer and Producer Freedom

• A market economy allows for economic freedom, enabling consumers and producers to make choices regarding resource allocation and goods produced.

Output of Traditional Economies

• Traditional economies predominantly produce goods based on customs and traditions, focusing on subsistence rather than surplus.

Irrelevance of Choice in Economics

• The concept of choice becomes irrelevant when resources are abundant or freely available, nullifying scarcity's impact.

Economic Problem Description

• The economic problem is best described as the challenge of allocating limited resources to satisfy unlimited wants and needs.

Measure of the Production Possibility Frontier

• The production possibility frontier measures the maximum output potential of an economy with given resources and technology.

Points on the Production Possibility Curve

• Any point lying on the production possibility curve indicates efficient use of resources, where production levels are optimized.

Description of Production Possibility Curve

• A production possibility curve is best described as a graph showing the trade-offs between two goods, illustrating opportunity costs and resource allocation.

Features of a Capitalist Economy

• A characteristic not found in a capitalist economy is heavy government control and central planning over economic activities.

Feature of a Command Economy

• A feature of a command economy is centralized control where the government dictates production, distribution, and pricing of goods.

Features in a Mixed Economy

• Mixed economies persist with a blend of market and command economy characteristics, combining free enterprise with government regulation.

Three Basic Economic Questions

• The three basic economic questions of every society capture what to produce, how to produce, and for whom to produce.

PPF Measurement of Two Goods

• In an economy producing only two goods, the production possibility frontier measures the trade-offs in production capacity between the two goods.

Test your knowledge of basic economics concepts with this True or False quiz. Determine whether each statement is true or false based on your understanding of economics principles.