Have an account?
Skip to Content
Build your own quiz
Suggestions for you
45 questions
Show Answers
See Preview
- 1. Multiple Choice
How does the scarcity of resources contribute to international conflict?
The abundance of resources makes distribution difficult
Countries that possess and control resources have economic power over others
World leaders want to be seen as kind and generous with their country’s resources
Countries often compete for control over how to protect resources for environmental concerns
- 2. Multiple Choice
From 7pm to 10pm, Chris can either attend a basketball game, a wrestling match, or a concert. Suppose that Chris decides to attend the wrestling match and thinks to himself that if he did not go to the match he would go to the concert. What is the opportunity cost of Chris attending the wrestling match?
Three hours of time
Going to the concert
Going to the basketball game
Going to the basketball game and the concert
- 3. Multiple Choice
Which describes a mixed economy?
Central planning
Based off patterns from the past
Has elements from several economic systems
Free exchange between sellers and buyers
- 4. Multiple Choice
The United States government is LEAST LIKELY to be involved in the nation’s economy as a
Consumer of goods and services
Owner of the means of production and planner deciding what to produce
Protector against false advertising and environmental hazards
Regulator charged with preserving competition in the marketplace
- 5. Multiple Choice
In this type of economic system, the production of goods and services is controlled solely by the concept of supply and demand, businesses are operated for profit, and the government is not involved.
Command
Traditional
Free Market
Mixed
- 6. Multiple Choice
In the Kingdom of Saudi Arabia the government controls every aspect of oil production which makes up the majority of the country's economy. While other businesses are owned by individuals, the biggest segment of Saudi Arabia's economy is oil production.
Saudi Arabia's Economy would best be described as
Pure market
Almost all command
A mixture between market and traditional
A mixed economy with large amounts of command
- 7. Multiple Choice
What can you infer from this spectrum?
Australia’s current government has no power over its domestic affairs.
The Australian government spends relatively little time controlling their economy
Russia is a Communist country
Germany has a completely free Market
- 8. Multiple Choice
In a mixed market economy, which of these would MOST likely be considered a basic function of the government?
To promote monopolies
To regulate who can purchase services
To ensure the financial well-being of all citizens
To help correct market failures and redistribute income
- 9. Multiple Choice
The graph shows all the production possibilities for an economy that only produces X and Y. All of the following statements about this economy are true EXCEPT
)Resources are fully utilized at points B and A
producing at point C results in the underutilization of resources
the combination represented at point D is unattainable, given the limitations of resources
Point A represents the most efficient combination of X and Y that can be produced by this economy
- 10. Multiple Choice
What is true of the concept of increasing opportunity cost?
It suggests that unlimited wants can be fulfilled within any economy
It is irrelevant if the production possibilities curve is parallel to the origin
It suggests that the use of resources to produce a set of goods and services means that as more of one is produced, some of the other must be sacrificed
It means that resources are abundant and occasions to produce larger amounts of goods and services are unlimited
- 11. Multiple Choice
Juan realizes that if he studies an extra hour for his test, he will score five points higher. For each extra hour spent studying, he is getting one hour less sleep. When deciding whether to spend an additional hour studying or sleeping, Juan is engaged in what economic activity?
Bartering
Marginal analysis
Market transactions
Trade-Off Analysis
- 12. Multiple Choice
A company is trying to decide how many workers to hire. They want to maximize profits. What is the maximum number of workers the company can hire to maximize profits while not having marginal costs exceed marginal revenue?
8
9
10
11
- 13. Multiple Choice
The Center for Disease Control (CDC) evaluates the marginal cost of the effectiveness of vaccinating all people against certain diseases. If the marginal benefit is set at $5,000, which generalization explains why the CDC does not demand vaccination of 100% of the people?
At low vaccination coverage rates (0-70%), the marginal cost is greater
At high vaccination coverage rates (71-100%), the marginal cost is less
At 100% vaccination coverage, the cost per case prevented is greater than the marginal benefit
At 100% vaccination coverage, the cost per case prevented is less than the marginal benefit
- 14. Multiple Choice
"By preferring the support of domestiek to that of foreign industry, [the individual] intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other eases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was no part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the publick good."
This Quote represents which economic System?
Capitalism
Communism
Socialism
Opportunity cost
- 15. Multiple Choice
What does IPO stand for?
Initial People Overstock
Initial Public Offering
Interest Paid Often
Interested Public Offerings
- 16. Multiple Choice
Unlike a market economy, a command economy uses
more centralized planning in economic decision making
consumer sovereignty to make production decisions
its resources more efficiently
price signals in economic decision making
- 17. Multiple Choice
The diagram above shows the production possibilities curve for an economy that produces only consumption and capital goods. All of the following statements about this economy are true EXCEPT
Producing at Point Z will result in not using resources effectively
Point Y is unattainable given the countries current resources
Resources are fully utilized at point W
Point X represent the most efficient combination of the two goods.
- 18. Multiple Choice
Which characteristic of the private sector BEST explains why a market economy is unable to reliably address environmental concerns and requires government regulation?
profit motive
obligation to shareholders
independent management
reliance upon commercial loans
- 19. Multiple Choice
A headline reads: "High Tech Firms Begin Producing New Generation of Computers." What basic economic question is being addressed in this headline?
how to produce
what to produce
when to produce
for whom to produce
- 20. Multiple Choice
In the US, if a company does not follow environmental regulations and over-pollutes, they will probably have to pay a fine. Why does the US government force certain industries to comply with environmental regulations?
To reduce the cost of goods for consumers.
To reduce barriers to entry in the industry.
To make sure companies bear the cost of their own pollution.
To make sure that no company can develop into a monopoly.
- 21. Multiple ChoiceWhat is the production possibilities curve?a graph that shows how much an economy can produce between 2 goodshow much money something isthe opportunity one has to give up in order to gain something elseland, labor, capital, entrepreneurs
- 22. Multiple ChoiceHow do you satisfy your unlimited wants in a world of limited resources?by making more moneyby making choicesby stealingby setting a budget
- 23. Multiple Choice
What is the fundamental economic problem facing all societies that results from a combination of limited resources and people’s virtually unlimited wants.
scarcity
opportunity cost
factors of production
utility
- 24. Multiple ChoiceWhich of the following would consumers MOST OFTEN need to consider when trying to make a rational economic decision?The impact of government subsidiesPotential opportunity costsFactors of ProductionsNet Exports
- 25. Multiple Choice
What does the production possibilities curve tell economists?
Comparative advantage
Scarcity and trade-off
Advantage and trade-off
True Cost and advantage
- 26. Multiple ChoiceRepresents shares of ownership in a company.stockportfoliovolumeindustry
- 27. Multiple ChoiceThe highest-valued alternative that must be given up to engage in an activity.ScarcityFactors of ProductionInnovationOpportunity Cost
- 28. Multiple ChoiceThe situation in which unlimited wants exceed the limited resources available to fulfill those wants.MarketTradeoffScarcityEquity
- 29. Multiple ChoiceThe study of how people seek ways to meet their wants and needs by making choices is called?EconomicsScarcityCapitalismEntrepreneurs
- 30. Multiple ChoiceThis economic concept that nothing is truly free; everything has a cost.scarcityopportunity costTINSTAAFL - There is no such thing as a free lunchYou break it, you buy it
- 31. Fill in the Blank
For the United States What is the Opportunity Cost of moving from Point F to Point B
- 32. Fill in the Blank
For the United States What is the Opportunity Cost of moving from Point A to Point C
- 33. Fill in the Blank
For General Motors, the opportunity cost of moving from Point A to Point E is:
- 34. Fill in the Blank
For General Motors, the opportunity cost of moving from Point C to Point A is:
- 35. Fill in the Blank
What is the per unit Opportunity Cost moving from Point F to Point D
- 36. Fill in the Blank
What is the per unit Opportunity Cost moving from Point A to Point B
- 37. Fill in the Blank
For Dole, the PER UNIT opportunity cost of moving from Point E to Point B is:
- 38. Fill in the Blank
For China, the PER UNIT opportunity cost of moving from Point C to Point A is:
- 39. Multiple Choice
Which production possibility would be most allocatively efficient if Great Britain faced a brutal winter and needed as much coal produced as possible?
Point F
Point A
Point B
Point D
- 40. Fill in the Blank
For Great Britain, the opportunity cost of moving from Point B to Point F is
- 41. Multiple Choice
A country produces computers and rice. If resources are fully employed and there is technological progress only in the production of rice, the opportunity cost of producing computers and rice will change in which of the following ways?
Opportunity cost of computers -increase
Opportunity cost of rice - increase
Opportunity cost of computers -increase
Opportunity cost of rice - decrease
Opportunity cost of computers - no change
Opportunity cost of rice - decrease
Opportunity cost of computers - decrease
Opportunity cost of rice - decrease
- 42. Fill in the Blank
An outward shift in the PPC curve of an economy can be caused by an increase in
- 43. Multiple Choice
Movement along a production possibilities curve shows which of the following
The trade-offs society faces
The total amount of available resources
The combination of inputs required for a given output
The relationship between the price of an input and and the quantity demanded
The decrease in efficiency
- 44. Multiple Choice
A production possibilities curve can shift inward if there is
An increase in productivity
An increase in unemployment
An increase in the price of raw materials
A misallocation of resources
A natural disaster
- 45. Multiple Choice
Which of the following is true of an economy’s production possibilities curve?
It shows the combination of any 2 resources that can be used to produce an efficient level of output
It shows the alternative combination of goods that can be produced by fully employing scarce resources
It must be a straight line when all resources are fully employed
It is bowed in (convex to the origin) because of changing levels of technology
- Answer choicesTagsAnswer choicesTags