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- 1. Multiple Choice
A university wants to recruit a student for its gymnastics team. Five other universities want to recruit the same student.
What economic problem does this scenario exemplify?
Scarcity
Human Capital
Diminishing returns
Meiosis
- 2. Multiple Choice
How do entrepreneurs encourage innovation?
By developing new products and processes
By creating jobs in the private sector.
By improving society.
By limiting profit.
- 3. Multiple Choice
Why is division of labor considered an efficient method of labor?
Each worker divides up his or her different tasks for the day and does not multitask.
Each worker specializes in his or her task which allows him or her to work more efficiently.
Each worker is separated from other workers, so they cannot socialize during business hours.
Each worker is assigned to a shift and that allows production to continue for three shifts a day.
- 4. Multiple Choice
Which describes how voluntary exchange MOST OFTEN occurs in highly developed economies?
Both parties buy goods or services from each other.
Both parties barter with each other for goods and services.
One party uses money to pay; the other party uses credit to pay.
One party uses money to pay; the other provides a good or service.
- 5. Multiple Choice
Which method of allocating scarce resources distributes those resources to those who MOST need or want them?
Allocating by price.
Allocating by lottery.
Allocating by contest
Allocating by majority rule.
- 6. Multiple Choice
"Congress Passes Bill to Increase Duration of Unemployment Benefits During Great Recession"
What government action does the bill in the headline exemplify?
Redistribution of income.
Resolution of market failures.
Protection of property rights.
Provision of public goods and services.
- 7. Multiple Choice
In 2008 the United States government loaned money to companies in the automobile industry.
This is a example of which of the following?
Regulation
Deregulation
Pure competition
Market economic system
- 8. Multiple Choice
Which BEST describes how investment in capital goods impacts economic growth?
An increase in investment in capital goods reduces production of consumer goods which slows growth.
An increase in investment in capital goods causes an inward shift in the production possibilities curve.
An increase in investment in capital goods leads to a decrease in real gross domestic product (GDP).
An increase in investment in capital goods usually leads to an increase in productivity.
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