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Economics Unit 1 Test
Economics Unit 1 Test
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Review for the Economics Unit 1 Test.
Flashcards
32 cards
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Questions
32
Answers
1
Opportunity cost
is the value of the next
marginal analysis conducted for choice.
option right after the one you did not choose.
best alternative (your second choice).
time you get to pick your first choice.
2
Which of the following is an example of a company's
physical capital
?
Time expended and machinery used by the company's customers.
Training required for the workers to operate machinery.
Machinery used by workers to provide a good or service.
Knowledge and skills gained by workers through education.
3
Which of the following business types would it be
more likely
for you to own a share of?
a sole proprietorship
a corporation
a limited partnership
a general partnership
4
Which type of business organization has the greatest amount of
individual
liability?
sole proprietorship
limited partnership
franchise
corporation
5
An
action
or
activity
that one person performs for another would be an example of a
need.
service.
good.
want.
6
A
corporation
is a(n)
business owned by two or more people who share profits.
business owned by a single person who receives the profits.
institution that does not operate to make a profit.
large company and legal entity owned by stock shareholders.
7
All of the following are
characteristics
of a successful entrepreneur
except
desire to work hard and put in long hours.
strong knowledge of business.
willing to take risks.
profound lack of creativity.
8
A
sole proprietorship
is a(n)
institution that does not operate to make a profit.
large company and legal entity owned by stock shareholders.
business owned by two or more people who share profits.
business owned by a single person who receives the profits.
9
A
physical object
such as clothing or shoes would be an example of a
service.
good.
need.
want.
10
A nation's
Production Possibilities Curve
shows
alternative ways to use an economy's productive resources.
when to produce certain goods.
the best use of resources to ensure efficient growth.
the proper way to measure productivity and cost.
11
Which of the following is an example of
labor
?
Land, water, trees, oil, coal.
Buildings, machines, money, tools.
Risk-takers who combine land, labor & capital in a business.
The work that people do.
12
All of the following are
risks
entrepreneurs take when going into business
except
potentially losing money or investments.
not knowing how to run all aspects of a company.
being creative and using your skills to help a business.
people may not want or buy your product or service.
13
Which of the following describes the
best advantage
of a corporation?
personal service to its customers via word of mouth
a guarantee of greater profits
greater access to productive resources and capital
increase in individual liability and production costs
14
Government planning
has no part in making decisions in which of the following economic systems?
centrally planned
pure market
command
mixed
15
Scarcity
always exists
because our needs and wants are
entirely unrelated to our resource supply.
always equal to our resource supply.
always less than our resource supply.
always greater than our resource supply.
16
Which
is
a characteristic of a
centrally planned, Communist system
(like in Cuba)?
investments are determined by private decision
the central government answers all 3 key economic questions
private or corporate ownership of capital goods
individuals answer all 3 key economic questions
17
All of the following are basic questions that Economics attempts to answer
except
Who produces goods for profit?
What is produced?
For whom should we produce?
How is it produced?
18
A
partnership
is a(n)
institution that does not operate to make a profit.
business owned by a single person who receives the profits.
large company and legal entity owned by stock shareholders.
business owned by two or more people who share profits.
19
All of the following are reasons that
entrepreneurship
is attractive to many people
except
You have to pay double taxes due to the Entrepreneur Act.
You get to be creative, using your skills to help business.
You get to be your own boss, and make your own schedule.
You have the opportunity to make money, and earn a profit.
20
The four
Factors of Production
are
land, labor, capital, and entrepreneurship.
supply, demand, scarcity, and resources.
sole proprietorships, partnerships, corporations, & other.
cost, benefit, profit, and marginal analysis.
21
Which of the following is an example of
capital
?
Land, water, trees, oil, coal.
The work that people do.
Buildings, machines, money, tools.
Risk-takers who combine land, labor & capital in a business.
22
Which of the following statements is true about
scarcity
?
All of the goods and services we produce are scarce.
Some of the goods and services we produce are scarce.
Only goods and services used to satisfy needs are scarce.
Only goods and services used to satisfy wants are scarce.
23
Which of the following is an example of
entrepreneurship
?
Land, water, trees, oil, coal.
Risk-takers who combine land, labor & capital in a business.
Buildings, machines, money, tools.
The work that people do.
24
The concept of
scarcity
implies
limited quantities of resources to meet unlimited wants.
limited quantities of resources to meet limited wants.
unlimited quantities of resources to meet unlimited wants.
unlimited quantities of resources to meet limited wants.
25
Which of the following is
most likely
to face the greatest amount of government regulation?
a corporation
a limited partnership
a general partnership
a sole proprietorship
26
Economic efficiency
is using
unlimited resources to fulfill people's wants and needs.
non-scarce resources to minimize the profit of purchases.
limited resources to maximize cost of goods and services.
scarce resources to maximize production of goods & services.
27
Which economic system offers the best opportunities to go into business for yourself?
free enterprise
traditional
command
centrally planned
28
All of the following are advantages of a
sole proprietorship
except
the owner making his own hours.
the owner getting to keep all of the profits.
the owner making all of the business decisions.
the owner being taxed for dividends from shares of stock.
29
An item that we desire but that is
not
essential
to survival is a
service.
want.
good.
need.
30
Which of the following is an example of
land
?
The work that people do.
Land, water, trees, oil, coal.
Buildings, machines, money, tools.
Risk-takers who combine land, labor & capital in a business.
31
Which
is not
a characteristic of a
free enterprise system
(like we have here in the U.S.)?
private or corporate ownership of capital goods
the central government answers all 3 key economic questions
investments are determined by private decision
individuals answer all 3 key economic questions
32
Something like air, food, or shelter that
is necessary
for survival is a
need.
service.
good.
want.
