The fundamental problem of economics is

scarcity of factors of production b/c of unlimited wants

What is the best description of entrepreneurship?

person willing to take a risk by combining resources

Which of the following is an example of an investment in human capital?

a business trains a new employee

Which describes relationship betw. investment in personal education & standard of living?

higher ed level, higher salary most likely

Which statement is true about this PPC?

moving from X to Y incurs an opportunity cost of guns

How can an assembly line increase a factory's productivity?

workers focus on a specific task

In this PPC graph, what might cause the line to move to the left?

a shortage of needed raw materials

Which is the best explanation for why there is always scarcity?

peoples' wants are unlimited, but resources are limited

Specialization increases efficiency by

letting workers become experts at 1 task

Good example of the effect of education on income?

people w/ college degrees usually earn more

Alex & Dylan mow & trim lawns. Each mows & trims. How could they improve their efficiency?

Alex mows while Dylan trims same lawn

The economic term "scarcity" relates MOST directly to which situation?

manufacturers lack raw materials needed to satisfy demand

The opportunity cost of going to college instead of a full-time job for $20,000 per year is

$80,000 of income while attending for 4 yrs

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Basics/PPC/Absolute & Comparative Advantage

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Questions 21

Answers

1
The fundamental problem of economics is
scarcity of factors of production b/c of unlimited wants
to establish an equitable system of personal & business tax
achieve a more equitable distribution of money
establish democratic political framework for goods/services
2
If Trey & Jon split the jobs in their computer repair store, this is an example of what?
specialization
scarcity
incorporation
competition
3
What is the best description of entrepreneurship?
ability of a person to work more efficiently than another
physical & mental talents of workers
person willing to take a risk by combining resources
person who uses land, labor, & capital in their job
4
In the graph, point E is
unemployment
inefficiency
efficient production
unattainable
5
In the graph, point C represents
inefficiency
unemployment
unattainable
efficient production
6
Which of the following is an example of an investment in human capital?
a country builds new bridges
a business trains a new employee
a company builds a new factory
a state puts in a new highway
7
Which describes relationship betw. investment in personal education & standard of living?
higher ed level, more likely to be unemployed
higher ed level, less likely to increase productivity
higher ed level, higher salary most likely
higher ed level, lower salary likely to make
8
Which statement is true about this PPC?
moving from X to Y incurs an opportunity cost of guns
country does not have to give up any guns to make butter
at X, this country is producing more butter than guns
moving from X to Y incurs an opportunity cost of butter
9
When a company invests in new capital goods & tech, what is most likely to occur?
economic freedom
supply and demand
opportunity costs
economic growth
10
How can an assembly line increase a factory's productivity?
workers diversify their skills
workers use a wide range of knowledge
workers focus on a specific task
workers put in overtime hours
11
What is the cost of a shift from point B to point A?
computers
textbooks
neither textbooks nor computers
computers and textbooks
12
In this PPC graph, what might cause the line to move to the left?
increased efficiency b/c of new technology
increased demand for basketballs
a shortage of needed raw materials
an increase in the number of workers
13
Which is the best explanation for why there is always scarcity?
people & tools are inefficient
peoples' wants are unlimited, but resources are limited
gov'ts create scarcity to keep people wanting more
natural disasters cause shortages
14
An assembly line increases a factory's productivity b/c it allows workers to
diversity their skills
focus on a specific task
put in overtime hours on the job
use a wide range of knowledge
15
Specialization increases efficiency by
working employees longer hours
increasing amount of labor
letting workers become experts at 1 task
giving workers more breaks
16
Good example of the effect of education on income?
only applicants w/ high school diplomas get interviews
workers who learn high demand produces paid more
employs who perform high risk jobs get paid more
people w/ college degrees usually earn more
17
Alex & Dylan mow & trim lawns. Each mows & trims. How could they improve their efficiency?
both reduce the # of lawns they mow & trim
Alex mows while Dylan trims same lawn
both mow the lawn then trim together
Alex trims Dylan's lawn & Dylan trims Alex's
18
Profits are minimal due to high costs of farming w/ poor tools & manual labor. Needed resource?
capital
entrepreneurship
labor
land
19
The economic term "scarcity" relates MOST directly to which situation?
manufacturers lack raw materials needed to satisfy demand
employees lack experience needed to earn a promotion
business lack customers needed to make a profit
individuals lack money needed to purchase goods
20
The opportunity cost of going to college instead of a full-time job for $20,000 per year is
all of these
alternate use of the money used for tuition
$80,000 of income while attending for 4 yrs
alternate use of the money used for books
21
Can this company produce 65 textbooks & 7 computers at the same time?
no
yes

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