The option MOST LIKELY to increase earnings potential in the long-term is to

spend money for additional training and education.

Why is the consumer considered "king" in a capitalist economy?

consumers determine what products will be produced

What is the primary purpose of job specialization?

increased efficiency and productivity

The opportunity cost of a move from point A to point B is

the decreased production of good Y.

An opportunity cost is

next-best alternative you give up in order to do something.

As one of the factors of production/productive resources, capital can be defined as

the equipment and factories needed to produce goods.

Companies like eBay, focus on voluntary exchange. Which BEST describes this type of commerce?

Decentralized decision-making buyers and sellers choose.

Although specialization increases productivity, one disadvantage is

loss of flexibility among workers.

When one specializes to produce one good, and then trades additional goods from others.

both parties gain as a result of voluntary exchange.

The BEST explanation of why there will always be scarcity is because

while peoples' wants are unlimited, resources are limited.

In capitalist economies, prices are

determined by supply and demand.

In a market economy, prices are established by...

the interaction of supply and demand.

The purpose of this production possibilities graph is to show

how few resources can be used to produce several items.

Investment in education, training, and skill development has been linked to

increasing earnings for workers.

If everyone receives the same pay for all jobs, what happens to peoples' incentive to work?

People might feel less inclined to work.

A government that operates in a market economy MIGHT become involved in the economy

to provide public goods and services to its citizens.

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Fundamentals of Economics

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Questions 25

Answers

1
The option MOST LIKELY to increase earnings potential in the long-term is to
take a similar position with a different company.
spend money for additional training and education.
laterally transfer to a different job within his company.
spend money to renew current training.
2
Why is the consumer considered "king" in a capitalist economy?
consumers vote for elected government officials
consumers contribute to the factor market
consumers own the productive resources
consumers determine what products will be produced
3
What is the primary purpose of job specialization?
regional self-sufficiency
increased efficiency and productivity
increased marginal utility
increased consumer income
4
Workers on an assembly line are an example of
allocation.
homogenization.
entrepreneurs.
specialization.
5
The opportunity cost of a move from point A to point B is
the increased production of D.
the decreased production of good X.
the decreased production of good Y.
the increased production of C.
6
An opportunity cost is
is only an issue when there is not a scarcity of resources.
usually absent in a command economy.
next-best alternative you give up in order to do something.
when goods are recycled into other goods.
7
As one of the factors of production/productive resources, capital can be defined as
the supply of labor needed to produce goods.
the people that purchase goods and services.
the equipment and factories needed to produce goods.
the goods and services a business produces.
8
Workers concentrating their efforts on a limited number of tasks is called
sequestration.
entrepreneurship.
specialization.
homogenization.
9
Companies like eBay, focus on voluntary exchange. Which BEST describes this type of commerce?
Decentralized decision-making requires a large bureaucracy.
Centralized decision-making: buyers and sellers choose.
Centralized decision-making produces economic output.
Decentralized decision-making buyers and sellers choose.
10
Although specialization increases productivity, one disadvantage is
a reduction in wasted time.
the loss of training time.
higher costs in training workers.
loss of flexibility among workers.
11
When one specializes to produce one good, and then trades additional goods from others.
neither party gains as specialization decreases efficiency.
both parties gain as a result of fraudulent exchange.
both parties gain as a result of voluntary exchange.
neither party gains as specialization decreases productivity
12
· ditch digger· computer programmer· international financier· ALL of these are examples of
unskilled labor
skilled labor.
human resources.
capital resources.
13
The BEST explanation of why there will always be scarcity is because
governments create scarcity to keep people wanting more.
people and their tools are inefficient.
natural disasters create frequent shortages.
while peoples' wants are unlimited, resources are limited.
14
In capitalist economies, prices are
set by the central government.
usually unfair.
used to ensure social equality.
determined by supply and demand.
15
In a market economy, prices are established by...
decree of government agencies.
the interaction of supply and demand.
consumers and labor unions.
businesses which buy and sell the products.
16
Economic system, the production of goods and services is controlled solely by supply and demand
communism
mixed
command
market
17
According to the quote, the author MOST LIKELY agrees with the benefits of
taxation.
manorialism.
specialization.
mercantilism.
18
Which of these terms is the BEST synonym for the word "entrepreneur"?
"student"
"home owner"
"employee"
"business owner"
19
The purpose of this production possibilities graph is to show
how few resources can be used to produce several items.
how supply and demand determine price.
the number of workers required for a specific task.
whether the supply of goods is elastic or not.
20
Investment in education, training, and skill development has been linked to
declining job satisfaction.
increasing earnings for workers.
decreasing political participation.
growing financial instability.
21
In a command economy, how are the prices of goods and services determined?
market forces of supply and demand
business owners
the central government
independent agencies and independent regulators
22
An investment in improving the skill level of labor is considered an investment in
capital improvements.
improved technology.
entrepreneurship.
human capital.
23
If everyone receives the same pay for all jobs, what happens to peoples' incentive to work?
People might feel more inclined to work.
People might feel less inclined to work.
The incentive to work will not change.
There is no effect on the incentive to work.
24
A government that operates in a market economy MIGHT become involved in the economy
to eliminate income inequality among its citizens.
to make sure all products are produced the same way.
to provide public goods and services to its citizens.
to increase the profits of a specific company.
25
Researching the sports goods likely to sell. The knowledge gained in this is an example of
allocation of resources.
labor.
human capital.
physical capital.

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