Which of these is NOT a fundamental economic question?

How will we pay for production?

The fundamental problem of economics is...

scarcity of resources relative to peoples' unlimited wants

In capitalist economies, prices are...

determined by supply and demand

something that motivates or encourages you to do something

Which of the following is an investment in human capital?

a business trains a new employee

studbud

Unit 1 Test Review (R)

17 termsStudBud Administration200 plays

A #reviewcahoot to ensure understanding of the various #economicsystems.

Flashcards17 cardsFPractice quizPHost liveL

Questions 17

Answers

1
Given the graph above, how could this economy achieve the production represented by point Z?
higher production costs
improvements in technology
get more computers
inflationary increases in process
2
Which economic question is most closely related to the idea of consumer sovereignty?
How to produce it?
What to produce?
When to produce it?
For whom to produce?
3
All of the points on this PPF represent possible product output EXCEPT:
B
X
A
Z
4
The production of goods and services is controlled by supply and demand in which economy
mixed
command
market
traditional
5
In the graph above, point X represents
unattainable
efficiency
the number of computers made
underutilization
6
Which of these is NOT a fundamental economic question?
For whom will we produce?
How do we produce it?
How will we pay for production?
What do we produce?
7
The fundamental problem of economics is...
to democratically provide social goods and services
achieve income equality in order to alleviate poverty
scarcity of resources relative to peoples' unlimited wants
to establish an equitable system of taxation
8
Which which term is a centrally planned economic system MOST closely associated?
governmental regulation
entrepreneurship
perfect competition
absolute advantage
9
In capitalist economies, prices are...
used to determine social equality
determined by supply and demand
usually unfair
set by the central government
10
An incentive is
something that motivates or encourages you to do something
a method of allocating goods and services
what you earn after deducting costs
supply and demand
11
The opportunity cost of going to college for 4 years instead of earning 20,000/year @ a job is
$80,000 of income while attending college for 4 years
The alternative use of the money used to buy books
All of the above
the alternative use of the money used to pay tuition
12
An investment in improving the skill level of labor is considered an investment in
capital improvements
human capital
entrepreneurship
improved technology
13
Which of the following is an investment in human capital?
a state puts in a new highway
a country builds new bridges
a company builds a new factory
a business trains a new employee
14
Which of these BEST represents a capital investment for a print & copy repair business?
buying a new set of tools
renting an office
hiring a new employee
renting a new set of tools
15
In which economic system are businesses operated for profit and the government is uninvolved?
mixed
market
traditional
command
16
The opportunity cost of producing 65 textbooks is
39 textbooks
4 computers
0 computers
7 computers
17
In the graph above, point A represents
Efficiency
Unattainable
Unemployment
Inefficiency

Unit 1 Test Review (R) Flashcards | StudBud