Unit 1 Review

Question 1

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

Accepted Answer

Solar Energy

Question 2

Which best represents a good or a service that has no apparent cost to consumers?

Accepted Answer

Public Parks

Question 3

What demonstrates the flow of goods/services and resources through markets and decision makers?

Accepted Answer

Circular flow model

Question 4

Which economic system allows central planners or a government to control production?

Accepted Answer

Command

Question 5

Which of the following is not an example of a capital resource?

Accepted Answer

The creation of a new hybrid fruit

Question 6

What does point Y represent on the graph?

Accepted Answer

Unattainable production

Question 7

Which economic system has little to no government involvement in the economy?

Accepted Answer

Pure Market

Question 8

What can be said about the production level at point B?

Accepted Answer

Production is efficient given the resources available

Question 9

What produces a linear PPF?

Accepted Answer

Constant opportunity cost

Question 10

What is sunk cost?

Accepted Answer

The value of what you cannot recover

Question 11

Which of the following best defines economics?

Accepted Answer

People use their scarce resources to satisfy unlimited wants

Question 12

Why is PPF bowed/curved?

Accepted Answer

Increasing opportunity cost

Question 13

What does it mean when production is unattainable?

Accepted Answer

Inability to produce at that level because lack of resources

Question 14

Which economic system is more vulnerable to changes in land and environment?

Accepted Answer

Traditional

Question 15

How many units of computers is given up as this PPF moves from point B to point A?

Accepted Answer

4

Question 16

If a neurosurgeon conducts new studies of brain development, this is an example of?

Accepted Answer

Human capital

Question 17

Which PPF combo produces the most revenue if clothing is worth $40 and food is worth $10?

Accepted Answer

Combo B

Question 18

Of the following, which one plays the largest role in the US economy?

Accepted Answer

Consumers

Question 19

When you choose a night with friends over studying for your final exam, what is your opp. cost?

Accepted Answer

The possibility of earning a higher grade

Question 20

What is opportunity cost?

Accepted Answer

The value of the best alternative

Question 21

Which of the following statements correctly defines the term entrepreneur?

Accepted Answer

All answers apply

Question 22

If a PPF shifts outward, this means?

Accepted Answer

Economic growth

Question 23

What is the law of increasing opportunity cost?

Accepted Answer

Give up more units of good A to produce additional good B

Question 24

How many more units of textbooks are made when this PPF moves from point B to point A?

Accepted Answer

28

Question 25

Which economic system believes market systems produce too much wants and not enough needs?

Accepted Answer

Command

Question 26

Which economic system blends the private sector with the public sector?

Accepted Answer

Mixed

Question 27

What are the 3 basic economic questions all systems answer?

Accepted Answer

For who? How? What to produce?

Question 28

What is a person's most valuable resource?

Accepted Answer

Time

Question 29

The following image best represents which resource?

Accepted Answer

Labor

Question 30

Point F on the graph represents?

Accepted Answer

Inefficient production with the given resources

Question 31

What's the economic problem?

Accepted Answer

Scarcity of resources and goods/service

Question 32

What does the graph demonstrate?

Accepted Answer

Economic decline due to a change in available resources

Unit 1 Review

Questions 32

Unit 1 Review

Questions 32