13. Why does division of labor increase productivity?

Employees do their jobs more quickly because they repeat the same tasks.

7. How does the use of plastic to produce bicycle helmets affect other plastic-using industries?

It decreases the amount of resources available to other industries.

12. Which policy would be in the best interests of consumers?

breaking up large companies to increase competition

17. Relative price compares...

the price of one good or service to another

2. How does scarcity affect customers?

Limited money forces consumers to make choices.

10. Which of the following laws is considered a trade barrier?

Paying money to an industry to encourage it to make goods in the country

8. An example of a monetary incentive would be...

Earning an allowance for doing chores.

11. What is one potential negative consequence associated with free trade?

People in certain industries earn lower wages or sell fewer products.

3. Opportunity cost is...

what you give up when you make a decision.

factors that encourage people to behave in a certain way

6. In a market economy, which is most likely to occur?

An inventor designs and produces a new type of car.

4. Jake decides to spend time doing extra football practice. What could be a short-term consequence of his decision?

His football skills will get a little better.

22. How do banks most help grow the economy?

They provide loans for consumers and investors.

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B - Unit 5 Test (Economics Basics)

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Questions 22

Answers

1
9. Which is an example of an import to the United States?
Utensils from China
Oranges from Florida
Flowers in your yard
Peaches from Georgia
2
13. Why does division of labor increase productivity?
Employees can earn more money.
Employees do their jobs more quickly because they repeat the same tasks.
Employees try to finish their work more quickly to watch the Phillies on TV
Not as many employees would be hired.
3
7. How does the use of plastic to produce bicycle helmets affect other plastic-using industries?
It decreases the amount of resources available to other industries.
The demand for plastic would decrease.
There would be no affect.
The supply of plastic would increase.
4
20. Which of these is an example of price competition?
New marketing strategies
Ending the sale of certain products
Holiday sales
Customer satisfaction surveys
5
12. Which policy would be in the best interests of consumers?
changing loan interest rates to encourage saving rather than borrowing
decreasing minimum wage
increasing tariffs
breaking up large companies to increase competition
6
14. When a country experiences an economic boom, their trade partners will likely...
also have an economic boom
decrease interest rates
increase taxes
experience a recession
7
17. Relative price compares...
the price different sellers ask for the same good
the quality of the item used to barter
the price that buyers pay to the price that sellers ask
the price of one good or service to another
8
18. Equilibrium is achieved when...
Supply equals demand
Supply is less than demand (shortage)
Supply is greater than demand (surplus)
9
2. How does scarcity affect customers?
Limited time prevents customers from making decisions.
Limited money forces consumers to make choices.
Limited wants and needs limit customers to small purchases.
Limited numbers of producers force customers to be loyal.
10
21. Labor unions are most closely tied to which type of productive resource?
entrepreneurship
capital resources
natural resources
human resources
11
10. Which of the following laws is considered a trade barrier?
Consumers deciding to purchase only locally made goods
Paying money to an industry to encourage it to make goods in the country
A company that goes out of business.
Federal aid given to unemployed workers.
12
16. How would supply shift caused by lower costs of production affect price and quantity?
lower price, higher quantity
lower price, lower quantity
higher price, lower quantity
13
1. Which of these is an example of a capital resource?
Entrepreneurs
Iron ore
Computers
Workers
14
8. An example of a monetary incentive would be...
Going to school.
Learning a new skill.
Earning an allowance for doing chores.
The enjoyment you experience by spending time with friends and family.
15
11. What is one potential negative consequence associated with free trade?
Buyers and sellers can no longer make price decisions.
People in certain industries earn lower wages or sell fewer products.
Countries that practice free trade have high unemployment.
Import and export taxes are high under free trade.
16
3. Opportunity cost is...
any decision that you make.
the amount of money you pay for a good or service.
the resources you use when making a good.
what you give up when you make a decision.
17
5. Incentives are...
how producers divide labor between employees
types of economies
factors that encourage people to behave in a certain way
the opportunity costs of a decision
18
6. In a market economy, which is most likely to occur?
An inventor designs and produces a new type of car.
Scarce products are more available.
The government makes all economic decisions.
Students are guaranteed jobs out of college.
19
19. According to the law of demand, what role do low prices serve for buyers?
demand
substitute
penalty
reward
20
4. Jake decides to spend time doing extra football practice. What could be a short-term consequence of his decision?
His coach will ask him to quit the team.
He will become a professional football player.
His football skills will get a little better.
He will earn a football scholarship.
21
15. When two countries are trading partners, they can be considered...
incentivizing consumers
interdependent on one another
two peas in a pod
economic rivals
22
22. How do banks most help grow the economy?
They provide loans for consumers and investors.
They are difficult to steal from.
They offer both checking and savings accounts.
They are backed by the federal government.

B - Unit 5 Test (Economics Basics) Flashcards | StudBud