What is the opportunity cost of a decision?

the most desirable alternative given up for the decision

How could the Chinese economy be characterized?

mixed, but on the side of centrally planned

Why are all goods and services scarce?

Some goods cost more than others.

Which of the following is NOT characteristic of a centrally planned economy?

Each collective or factory sets its own goals

Human capital includes

a taxi driver’s knowledge of the city streets.

An example of a shortage is limited amounts of

food available because the trucks carrying it are on strike.

An efficient economy is one that

uses its resources to make the most goods and services.

Which of the following is an example of scarcity, rather than shortage?

Someone wants a supply of everything but cannot have it

The lack of which of the following represents a scarcity?

workers to finish two jobs because of a limited supply

Why does even a free market economy need some government intervention?

to provide for things that the marketplace does not address

Which of the following lists would an economist consider to be land?

iron ore, natural gas, fertile soil, water

Which of the following is NOT a key economic question?

How can it be ensured that goods and services are paid for?

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Economics Unit 1 Part 1

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Questions 20

Answers

1
What is the opportunity cost of a decision?
the alternative decisions that could have been made
the ways a different person may have made the decision
the most desirable alternative given up for the decision
the best possible way the question could have been decided
2
How could the Chinese economy be characterized?
free market
mixed, but on the side of centrally planned
mixed, but on the side of free market
centrally planned
3
Which of the following was a free market philosopher?
Karl Marx
Vladimir Lenin
Adam Smith
Friedrich Engels
4
An automaker installs new machines to build cars faster. This is an example of growth caused by
technology
land and natural resources.
human capital.
production possibility curves.
5
What incentive motivates a manufacturer to sell a product?
putting others out of business
pleasing the consumer
making profits on sales
popularity of the product
6
Why are all goods and services scarce?
Some people want to have more goods than others.
Some things are needs and others are wants.
Some goods cost more than others.
Some goods cost more than others.
7
Which of the following is NOT characteristic of a centrally planned economy?
The central government makes all economic decisions.
The central government owns all land and capital.
Each collective or factory sets its own goals
Each person is assigned a job
8
Human capital includes
the salary paid to an accountant
the machinery used to weave cloth
the equipment used by a doctor to cure a patient
a taxi driver’s knowledge of the city streets.
9
An example of a shortage is limited amounts of
labor available because the workers have other jobs.
water used for irrigation because it is being used elsewhere
food available because the trucks carrying it are on strike.
food available because few people want to buy it.
10
An efficient economy is one that
makes the best use of all its goods and services.
uses its resources to make the most goods and services.
has very few people who do not work for a living.
makes the least costly use of its resources.
11
Which of the following is an example of scarcity, rather than shortage?
You have spent your last penny and payday is a week away
A popular toy is sold out during the busy holiday season.
Someone wants a supply of everything but cannot have it
Gasoline was rationed in America during World War II
12
What does the process of specialization do for an economy?
It makes it easier to control.
It makes it more efficient.
It fosters competition.
It eliminates unemployment.
13
Any resources that are made by humans and used to create other goods and services are called
capital
services
labor
production
14
The lack of which of the following represents a scarcity?
orange juice because the trucks carrying it are on strike
enough workers to work at night because the pay is too low
grapefruit juice because very few people want to buy it
workers to finish two jobs because of a limited supply
15
Why does even a free market economy need some government intervention?
so that the gov. has some control over factor resources
so that the government can fulfill its needs for military
to ensure that the government has the freedom to tax
to provide for things that the marketplace does not address
16
Which of the following lists would an economist consider to be land?
factories, office buildings, assembly lines, workers
iron ore, natural gas, fertile soil, water
dams, bridges, rock quarries, oil wells
farm fields, tractors, pesticides, fertilizers
17
Which of the following is NOT a key economic question?
Who consumes these goods and services?
How should these goods and services be produced?
How can it be ensured that goods and services are paid for?
What goods and services should be produced?
18
The resources used to make all goods and services are the
factors of production
production trade-offs
production possibilities
opportunity costs
19
What is the struggle among various producers for the consumer’s business called?
socialism
incentive
competition
self-regulation
20
What is a factory building an example of?
an economic trade-off
physical capital
technology
human capital

Economics Unit 1 Part 1 Flashcards | StudBud