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- 1. Multiple Choice
How does specialization encourage international trade?When countries specialize in one product, they can master it and sell it to other nations.When countries make many different products, they do not have to trade.Specialization uses resources from many countries.Specialization does not encourage international trade. - 2. Multiple ChoiceWhich is the best example of specialization?A surf shop lowers the price on swimsuits.A dry cleaner spends extra time on grease spots.An assistant in a tailoring shop only replaces zippers.An online clothing outlet offers customized monograms.
- 3. Multiple ChoiceIn a voluntary exchange, why do people give something up?to increase their self-sufficiencyto get something they want moreto allocate scarce resources fairlyto allocate scarce resources fairly
- 4. Multiple ChoiceIn economics, rational decisions occur when
SSEF2bsuppliers lower their prices to increase demandmarginal benefits of an action equal or exceed the marginal costsa budget is used for spending and saving decisionscommand economies answer the three basic questions - 5. Multiple ChoiceWhich is a human resource that Ms. Johnson could use for her art gallery?
SSEF1bLight fixtures to help display the artwork.A security system to protect the artwork.Knowledge of trends in modern art.A series of paintings by a prominent local artist. - 6. Multiple ChoiceWhich is a fundamental questions every society must answer?
SSEF1aWhat goods and services are to be produced?How are the goods and services to be produced?Who will get the goods and services that are produced?All of the above - 7. Multiple ChoiceA and B both wash cars and change oil. Currently, each man washes and changes oil by himself, but the process takes lots of time. they would MOST LIKELY improve their efficiency if
SSEF2bA & B wash a car and chang eoil togetherA washes car while B changes oilA washes B car while B washes A's carA and B reduce the number of cars they wash - 8. Multiple ChoiceSusan offers to trade her old iPod for Claudia's cell phone and Claudia accepts. Assuming both products work perfectly, we can conclude that
SSEF3bClaudia is now happier than Susan.neither party has gained because the exchange was fraudulentboth people have gained because the exchange was voluntary and non-fraudulentSusan places the same value on cell phones as she does for iPods - 9. Multiple ChoiceInvesting heavily in new capital equipment and technology is MOST related to
SSEF6bsupply and demandopportunity costseconomic growtheconomic freedom - 10. Multiple ChoiceCompetition and free enterprise are most common in which type of economic system?
SSEF4atraditionalmarketcommunistplanned - 11. Multiple ChoiceEconomic growth is often tied to investment in machinery, new technology, and education of the population. This is because
SSEF6bthese items lead to a greater productivity of inputsthe only way to measure economic growth is to observe change sin these factorsinvestment in these items are sole determinant of outputall of these items improve captal resources - 12. Multiple ChoiceThere are four types of economic systems. Most economies are _____.
SSEF4aTraditionalCommandMarketMixed - 13. Multiple ChoiceWhich BEST describes productivity?
SSEF6athe interaction of buyers and sellersthe relationship of inputs and outputsproducing at high opportunity coststrading based on absolute advantage - 14. Multiple ChoiceWhy do governments interact in economies to redistribute income, resolve market failures, and provide public goods and services?
SSEF5ato provide equity and stability to the economyit is the easiest way to achieve economic growthcentral banks, like the Fed, do not have the ability to do these thingsto maximize the ups and downs of the business cycle - 15. Multiple ChoiceWhich provides the greatest incentive for entrepreneurs to take risks?
SSEF1cpricesinflationprofitsinterest - 16. Multiple ChoiceA production possibilities curve shows
SSEF6dthe technological changes that improve productionchoices a person makes between itemsall of society’s resourcesthe combination of goods that can be produced with a set of resources - 17. Multiple ChoiceIf the producer in the PPC seen here is producing at point X, moving to point Z would mean an opportunity cost of
SSEF1d3 pounds of cheese7 pounds of cheese10 gallons of milk20 gallons of milk - 18. Multiple ChoiceWhen one person or group depends on or relies on anotherImportSpecializationInterdependentExport
- 19. Multiple ChoiceWhen governments break up monopolies and try to address shortages or surpluses, they are serving the roleProtecting property rightsResolving market failuresRedistributing inomceProviding Public Goods
- 20. Multiple ChoiceHow are most public goods and services paid for in the United States?By soliciting corporate contributionsBy soliciting charitable donationsBy collecting user feesBy collecting taxes
- 21. Multiple ChoiceWhich of these is NOT one of the major roles that the US government plays in the economy?Providing private goods and servicesRedistributing income through transfer paymentsProtecting property RightsHow much its governments improves fiscal policy
- 22. Multiple ChoiceLimited resources available to satisfy unlimited wants & needs createtheoriesallocationscarcityopportunity benefits
- 23. Multiple ChoiceWhat's the relationship between specialization and voluntary exchange?specialization leads to a need for voluntary exchangespecialization exists because of voluntary exchangesvoluntary exchanges causes specializationvoluntary exchange negates the need for specialization
- 24. Multiple ChoiceFundamental economic problem faced by allunemploymentinequalitypovertyscarcity
- 25. Multiple ChoiceWhat are governments MOST LIKELY attempting to do when they increase unemployment benefits, implement more welfare programs, and rearrange tax brackets?Protect property rightsResolve market failureRedistribute incomeInvest in technology
- 26. Multiple ChoiceWhich of the following is an example how the US Government regulates and/or effects the economy?InflationFree MarketsUnrestricted tradeConsumer-Protected policies
- 27. Multiple Choice
When the federal government imposes fines against factories that pollute the air, what role is it playing in the economy?
Redistributes income
Protecting property rights
Providing public goods and services
Resolving market failures
- 28. Multiple ChoiceSSEF4a Consumer sovereignty, profit motive, private ownership, and competition are all most associated with which economic system?CommandMarketTraditionalNone of the above
- 29. Multiple ChoiceSSEF4c We start a new colony on mars and must distribute the scarce resources we have to everyone. We do so by having our leader allocate them as he decides. This strategy for allocating resources would be considered:LotteryAuthoritySharingMajority rule
- 30. Multiple ChoiceThe fundamental economic questions that all economies must answer areWho will rule, who will vote, and who will pay taxes?What will be produced, how will it be produced, and for whom it will be produced?Who determines the cost, who will set the prices, and who determines how much is made?How much will be produced, of what quality it will be, and who will pay for it?
- 31. Multiple ChoiceWaiting in line to get the limited amount of items available.1st Come-1st ServeCommandLotteryRationing
- 32. Multiple ChoiceBy age, by weight or height, by ancestry, alphabetically by name, by need, etc.Random DrawFiatFirst Come, First ServedPersonal Characteristic
- 33. Multiple Choice
Which of these is NOT one of the 4 factors of production?
Labor
Land
Entrepreneurship
Work Skills
- 34. Multiple Choice
Which of the following is NOT a requirement of scarce resources?
Limited
Desired
Valuable
Tradeable
- 35. Multiple Choice
A rational employer would only hire someone for $15 per hour if...
the workers were very productive
the employer really needed to increase his/ her output
they no longer had to cover health insurance
the workers produced more than $15 of revenue per hour
- 36. Multiple Choice
This image of an assembly line BEST represents the answer to which economic question?
What to produce?
How to produce?
When to produce?
For whom to produce?
- 37. Multiple Choice
MagnaFlare is a corporation that makes road flares. One of the primary components of a MagnaFlare is ground magnesium. How would the magnesium ore, from which ground magnesium is made, be classified as a factor of production?
capital resources
natural resources (land)
Entrepreneurship
It is not a factor of production, it is a product.
human resources (labor)
- 38. Multiple ChoiceBrian wants to buy a soda and a box of popcorn at the movies. However, he only has enough money for one or the other. If Brian buys the soda, which of the following is his "opportunity cost"?the price of the sodathe price of the popcornthe satisfaction of eating the popcornhis thirst
- 39. Multiple ChoicePaul wants to buy a classic sports car. Unfortunately, only a limited amount of dealers and collectors have the model car he wants. As a result, Paul will have to pay a high price, if he can even get the car at all. Paul is experiencingdepreciation in the marketsevere inflationan embargo on carsscarcity
- 40. Multiple Choice
Benjamin has saved $40.00 for concert tickets, but decides to buy a new pair instead. In this scenario, what do the concert tickets MOST LIKELY represent?
capital
scarcity
opportunity cost
decreased demand
- 41. Multiple Choice
the additional amount of effort, expense, or time one incurs from undertaking one or more units of an action
marginal benefit
opportunity cost
marginal cost
scarcity
- 42. Multiple ChoiceDeals used to motivate buyers. 50% off, coupons, etc.incentivessupplypriceconsumer sovereignty
- 43. Multiple Choice
the additional positive value one receives from undertaking one more unit of an action
opportunity cost
marginal benefit
marginal cost
scarcity
- 44. Multiple Choice
A __________________ takes risk by responding to consumer preferences(choices) and combining resources
Command Economy
Market Economy
Entrepreneur
"Productive" Employee
- 45. Multiple Choice
How is Human Capital different from Physical Capital?
Human Capital is related to labor only, Physical Capital is related to tools/machines
There is no difference between Human Capital and Physical Capital.
Human Capital is related to natural raw materials; Physical Capital is related to machines/tools
Human Capital is related to knowledge, skills, and experience; Physical Capital is related to machines/tools
- 46. Multiple ChoiceThis shows the various combinations and opportunity costs of production, when a company of country is efficiently using resources.Production possibilities curvetrade offsspecializationcomparative advantage
- 47. Multiple ChoiceThe money payments firms receive for the sale of outputs is calledcostsrevenueopportunity costfactor payments
- 48. Multiple ChoiceSSEF6 Which is the best way to increase productivity and economic growth?Investing in new technology and equipmentIncreasing labor lawsIncreasing the minimum wagenone of the above
- 49. Multiple ChoiceWhat can cause a production possibilities curve to move to the right?Greater quality or quantity of resourcesIncreased tradeNew technologyAll of the above
- 50. Multiple ChoiceWhich point represents "resources are not being used efficiently, or resources are being wasted or idle"?Point APoint YPoint XAll of the above
- Answer choicesTagsAnswer choicesTags