Which of the following is NOT a factor of production?

(D) the amount of money required to buy a car

An example of an opportunity cost would be

(A) Not being able to afford a trip because the family buys a computer

40. Meaningful Corporate Social Responsibility or CSR is

when companies create initiatives to address the negatives of capitalism

This quote explains Karl Marx’s belief that capitalism

(C) exploits workers, forcing them into draining and dehumanizing systems

22. What is a major disadvantage of a centrally planned economy?

(B) It cannot meet consumers' needs and Wants.

How a society answers the key economic questions primarily depends on

(B) A society’s goals and values.

(A) The doctrine that states that government generally should not intervene

39. Communism is differentiated from Decentralized Socialism in that

(A) communism comes close to controlling all legal economic activities

This quote explains Adam Smith’s belief that:

(B) self-Interest and competition work as incentives that benefit consumers

31. Which of the following statements is false.

in capitalism, inequality drives economic growth

29. How does this cartoon reveal the issue of scarcity?

(B) demonstrates the reality of trade offs.

Which of the following is not an example of resource scarcity?

(D) Cassette tapes are no longer produced

23. Consumer sovereignty is

(D) The power of consumers to decide what gets produced.

Why are individuals, companies, and governments required to constantly make choices about how to best utilize resources

(B) There is always a scarcity of resources.

How are trade-offs and opportunity costs different?

(A) The opportunity cost is the most desirable trade-off.

Why are scarcity and choice basic to the study of economics?

(A) because there is not an endless supply of all resources

(A) A market-based economic system based with some governement involvement

32. How does this cartoon reveal the issue of trade-offs and opportunity costs?

(A) Nations must decide how they will prioritize “Guns or Butter.”

In the study of economics, the definition of a market is

(B) An arrangement that allows buyers and sellers to exchange things.

Which of the following is an entrepreneur?

(C) a computer repair shop owner who opens a second shop across town

Which of the following is an example of a shortage?

not having enough soda in the store on Saturday because of a special sale

15. Using the factors of production to make one product always means that

(C) Fewer resources are left to make something else.

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Econ Unit 1

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Questions 40

Answers

1
Which of the following is an example of a resource? I. Petroleum II. a Factory III. a cheeseburger dinner
(A) I only
(C) III only
(B) II only
(E) I, II, and III
2
the trade-off that nations face when choosing between to producing more military or consumer goods is called...
(C) Guns or butter.
(B) Physical capital.
(D) Swords or plowshares.
(A) Shortage or scarcity.
3
Natural resources that are used to make goods and services are considered
Land
Money
Labor
Equipment
4
25. The struggle among producers for consumer dollars is
(D) Laissez faire.
(A) Incentive.
(C) Competition.
(B) Self-interest.
5
Physical objects such as clothes or shoes are defined as
Wants
Needs
Services
Goods
6
Which of the following is NOT a factor of production?
(A) the land required for a hog farm
(D) the amount of money required to buy a car
(C) the teacher required to teach an economics class
(B) the training required to repair an airplane engine
7
An example of an opportunity cost would be
(A) Not being able to afford a trip because the family buys a computer
(C) The price of gasoline for a family trip.
(D) Buying a computer to help get better grades in school.
(B) Buying a movie ticket.
8
40. Meaningful Corporate Social Responsibility or CSR is
(C) society acting responsibly when forming political corporate super PACs
(D) encouraging stakeholders to increase a corporation’s profit at any cost
when companies create initiatives to address the negatives of capitalism
when companies attempt to boost sales with philanthropic public relations
9
35. Which economic question requires society to choose the technological and resource mix used to produce goods
(B) Why to Produce question
(D) For Whom to Produce question
(A) What to Produce question
(C) How to Produce question
10
This quote explains Karl Marx’s belief that capitalism
(C) exploits workers, forcing them into draining and dehumanizing systems
(D) kills more workers than other economic systems
(B) continues to live on long after it should have died
(A) requires more labor than other economic systems
11
18. The economy of the United States in the 1880’s is best described as
(B) Command.
(C) Traditional.
(D) Mixed.
(A) Free Market.
12
capitalism, as an economic system, concentrates wealth and distributes income inequitably; this is also called
(C) inequality
(B) income variance
(A) wealth redistribution
(D) exploitation
13
22. What is a major disadvantage of a centrally planned economy?
(C) It has no control over which goods and services are provided.
(A) It offers too many choices for consumers.
(D) Its military forces are too weak to be effective.
(B) It cannot meet consumers' needs and Wants.
14
36. Which of the following is an example of a nation-state economy with a free market, as well as socialist features
Norway, only
Norway and Denmark
North Korea, only
Denmark, only
15
How a society answers the key economic questions primarily depends on
(B) A society’s goals and values.
(A) How many resources it has available.
(D) How it combines factors of production.
(C) The underutilization of resources.
16
26. Laissez faire is
(C) A social and political philosophy characterized by fair distribution
(B) A period of change in which an economy moves away from a central plan
(D) A philosophy that states that government should control the marketplace
(A) The doctrine that states that government generally should not intervene
17
28. Which of the following countries is in transition from a centrally planned economy to a market-based system?
United States
Singapore
France
China
18
24. Something, such as a reward or bonus, that encourages people to behave in a certain way could be called
(B) Self-interest.
(C) Competition.
(D) Laissez faire.
(A) An incentive.
19
39. Communism is differentiated from Decentralized Socialism in that
(D) the factors of production are left to market forces in communist system
(A) communism comes close to controlling all legal economic activities
(C) communism allows some freedom while decentralized socialism doesn't
(B) decentralized socialism intends to spread communist ideals world wide
20
This quote explains Adam Smith’s belief that:
(D) producers are philanthropists who only want to see society improve
(C) consumer sovereignty forces producers to make the basics societies need
(A) capitalism requires workers who love their job
(B) self-Interest and competition work as incentives that benefit consumers
21
31. Which of the following statements is false.
exploitation of the environment is driven by capitalism's desire for profit
capitalism creates surplus wealth that elites use to concentrate power
less developed countries are exploited by capitalist nations
in capitalism, inequality drives economic growth
22
12. The method used by a society to produce and distribute goods and services is
(A) A production curve.
(C) An opportunity cost.
(B) An economic system.
(D) The standard of living.
23
38. Which of the following represent aspects of the “American Dream,” as defined by our class
retirement
homeownership
All of the above
higher education
24
In a centrally planned economy, the three key economic questions are answered by the
(D) Marketplace with some government involvement.
(C) Marketplace alone.
(A) Central government alone.
(B) Central government with input from industry.
25
29. How does this cartoon reveal the issue of scarcity?
(B) demonstrates the reality of trade offs.
(D) show how limited resources are best used.
(C) shows the struggle between capitalists and the proletariat.
(A) it shows the debate between “Guns and Butter.”
26
Which of the following is not an example of resource scarcity?
(C) there are not enough physicians to satisfy the desire for healthcare in
(D) Cassette tapes are no longer produced
(A) there is a finite amount of petroleum in the world
(B) farming communities experiencing droughts
27
23. Consumer sovereignty is
(C) A market where consumers purchase goods and services collectively.
concentration of productive effort of individuals on limited activites
(D) The power of consumers to decide what gets produced.
(B) A person or group of people living off the land.
28
Why are individuals, companies, and governments required to constantly make choices about how to best utilize resources
(C)They all have more needs than wants.
(B) There is always a scarcity of resources.
(D) They all have more wants than needs.
(A) There is always a shortage of resources.
29
How are trade-offs and opportunity costs different?
It’s more important to be aware of the trade-off when deciding something
(B) A trade-off is the most expensive opportunity cost.
one can be put on a decision-making grid, but not the other
(A) The opportunity cost is the most desirable trade-off.
30
Why are scarcity and choice basic to the study of economics?
(A) because there is not an endless supply of all resources
(C) because most people have limited wants and needs
(B) because there is an endless supply of all resources
(D) because they are important factors of production
31
4. Any human-made resource that is used to create other goods and/or services is
(A) A service.
Capital
Labor
(B) An entrepreneur.
32
Who answers the key economic questions in a centrally planned economy?
(C) government
(B) firms
(A) consumers
(D) households
33
A mixed economy is
(A) A market-based economic system based with some governement involvement
(C) Exactly the same as a centrally planned economy.
(B) An economic system wherein the government regulates all prices
(D) The exact opposite of a free enterprise system.
34
32. How does this cartoon reveal the issue of trade-offs and opportunity costs?
(D) The Iraq War helped cut taxes for the wealthy
(C) Bush era tax cuts served to keep up infrastructure
(B) George W. Bush failed to keep U.S. roads in working condition
(A) Nations must decide how they will prioritize “Guns or Butter.”
35
In the study of economics, the definition of a market is
(A) The concentration of production on a limited number of activities
(C) A place to buy groceries and other household items.
(B) An arrangement that allows buyers and sellers to exchange things.
(D) A place where producers display their wares for sale.
36
Suppose that you prefer books to TV and that you prefer TV to music. What is the opportunity cost of reading a book?
(C) listening to music
(B) watching TV
(A) watching TV and listening to music
(D) sleeping
37
Which of the following is an entrepreneur?
a lawyer for an insurance company who wins a medical malpractice suit
(D) a doctor who volunteers her services in the aftermath of a hurricane
(B) an advertising copy writer who writes an award-winning commercial
(C) a computer repair shop owner who opens a second shop across town
38
27. Which of the following goods is provided by the U.S. government rather than by individuals?
roads
computers
food
steel
39
Which of the following is an example of a shortage?
(B) the price of grain going down when supplies are scarce
(C) having a sale on soda because there are too many cases on the shelf
not having enough soda in the store on Saturday because of a special sale
(A) the price of oil going up because more people are driving cars
40
15. Using the factors of production to make one product always means that
(B) A company may experience a shortage of materials.
(D) It is possible to make too many of that product.
(A) A nation can make more money.
(C) Fewer resources are left to make something else.

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