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Unit 1 Assessment Review Flashcards | StudBud
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Unit 1 Assessment Review
Unit 1 Assessment Review
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Questions
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Answers
1
In a market economy, which is the MOST LIKELY result of a continued decrease in profits?
Businesses decrease supply.
Consumers buy more products and services
The government increases taxes on profits.
Workers are paid higher salaries.
2
A manufacturing building is considered to be which FACTOR of production?
land
Capital
Labor
Entrepreneurship
3
Josie works as an administrative assistant for a big company. What term
BEST
describes her in this role?
Firm
Laborer
Consumer
Entrepreneur
4
An economic model used to illustrate the concepts of opportunity cost, efficiency, and economic growth is known
The Lorenz Curve
The Production Possibilities Curve.
The Factors of Production
The Paradox Value
5
Who will a command economy distribute goods to?
Whomever can afford to pay the highest price
Whomever is the first person to gain access to the goods
Whomever the government wants to receive the goods
Whomever the public decides should be given the goods
6
Patricia hired an electrician and the total cost was $90. She paid him promptly. Was this a voluntary exchange?
No, because the service was not equal in value of the money paid.
Yes, because both parties willingly entered the agreement and benefit
No because Patricia was not aware of the final cost before agreeing
Yes, because 1 party exchanged $ with another party for a good or service
7
Henry Ford invented the assembly line for automobiles. How did this increase the efficiency in his auto plants?
Each employee was able to perform multiple tasks.
He was able to hire more people
Specialization allowed for better performance on specific tasks.
He eliminated work stations to reduce division of labor.
8
Every year, a boss hosts an event where employees are publicly recognized. This way of motivating is known as:
An opportunity cost
A nonmonetary Incentive
An Annual Bonus
A Marginal Benefit
9
Which of the following would NOT increase human capital?
A DVD showing how to make something
A college course in accounting
An on-the-job training course
Maintenance of a fully-automated production company.
10
Which of the following BEST explains why the government collects taxes in a mixed economy?
The government collects taxes to keep the economy balanced.
The government collects taxes to provide public goods and services
The government collects taxes because people cannot control their spending
The government collects taxes to repay the debts incurred in military funds
11
Which is an example of investment spending that leads to economic growth?
an individual purchasing stocks
A government creating new welfare programs
A business building a new factory
A consumer purchasing a car
12
Jessica owns a restaurant in Atlanta. She sometimes raises her prices to cover costs. Why else would she raise prices
Tanner's Tavern closed and its customers were looking for somewhere new
She bought too many perishable items and has too much.
She opened a second store location and wants to attract new people.
Jessica's restaurant was closed for health violations driving people away
13
At Wendys there are cashiers, grill cooks, managers, and dishwashers. Each has a specific job. This is an example of ?
Lack of Training
Over-employment
Division of Labor
Budget Cutting
14
Mrs. Hardin decided to go to the gym. She gave up going home, shopping, and grading. Deciding among
ALL
of these =
Catch - 22
Fastian Bargaining
Opportunity Cost
Trade Off
15
Which of the following would cause a POSITIVE shift in the production possibilities curve?
A company that has been affected by a tropical storm.
A company that has opened its doors for the first time to consumers.
A company that invests in job training
A company that hires 100 new workers
16
Valencia spends an hour studying instead of going to ballet. Her willingness to study is due to the fact that she
Believes the marginal cost of studying an extra hour is challenging
Must enjoy studying more than she enjoys ballet
Considers her opportunity cost to be zero.
Marginal benefit of an extra hour of studying exceeds the cost of no ballet
17
When we choose between purchasing two different items with the same price, we will MOSTLY LIKELY choose the item w/ max
Marginal cost
Marginal benefit
Absolute Advantage
Comparative Advantage
18
Which of the following would NOT be likely to cause a production possibilities curve to shift outward?
More educated workforce
A revolutionary technological breakthrough in production.
Increased investment in research and development
Increased in energy prices
19
Michael Scott wants to MOTIVATE the staff to sell more paper. Which is an
MONETARY
incentive for the top seller?
An office with a view
A photo in the company newsletter
A trip to Hawaii
the use of the closest parking space.
20
In a market economy (Capitalism) what creates the incentive to produce?
Equal Distribution of Resources
Profits
Low Prices
Charity
21
What most likely motivated Cain to become an entrepreneur?
The desire to provide jobs for people.
The desire to improve society
The desire to reduce his risk
The desire to create a profit for himself.
22
When two parties agree to a voluntary exchange:
Both are worse off than before the exchange was made
Just one party gains, while the other party loses.
Neither party truly gains because the exchange was equal
Both parties receive more than what they gave up
23
A marketing firm wants to recruit David. Other companies want to recruit him as well. What economic problem is this?
Human capital
Scarcity
Diminishing Returns
Factors of Production
24
What is an assembly line an example of?
Repetition of Labor
A full employment program
Implementation of Labor
Division of labor
25
In a market economy, the supply of a product and the demand for that product interact to determine the product's
Quantity
Elasticity
Benefits
Price
26
"Clothing Company Aims Marketing Campaign at Young Athletes" What economic question does this headline address?
What to Produce?
For Whom to Produce
How to Produce?
When to produce
27
As a program, Medicare, Social Security, and Workman's Compensation is designed to achieve which of the U.S. econ. goals
Economic Equity
Economic Stability
Economic Security
Economic Freedom
28
In a market economy, which of the following laws would one be most likely to find implemented in the government?
Laws preventing individuals from destroying the property of others.
Laws that set the price of fruits and vegetables
Laws requiring all property unsold after 90 days be given to the government
Laws instructing firms of how many workers to employ.
29
The state of Hawaii recently started funding school programs to teach coding. Why would Hawaii do this?
To promote price stability through fiscal policy.
To improve the state's economy by investing in physical capital
To promote price stability through monetary policy
To improve the state's economy by investing in human capital.
30
Dino has seen an increase in business and is deciding whether to hire a new employee. On what should he base decisions?
If the opp. cost of hiring the new worker is < than the O.C. of opperating
If the marginal cost of their salary is greater than the revenue.
If the marginal revenue generated by the new worker is greater than cost.
