Henning Economics: Fundamentals

Question 1

A factory's warehouse would be considered which of the following productive resources?

Accepted Answer

capital

Question 2

Point B on the following production possibilities graph is considered...

Accepted Answer

maximum efficiency with given resources

Question 3

Unlimited needs and desires meeting limited resources is the definition of. . .

Accepted Answer

scarcity

Question 4

A movement from curve 1 to curve 2 shows a/an__________ on this production possibilities curve

Accepted Answer

increase

Question 5

What does the word allocate mean?

Accepted Answer

to distribute

Question 6

Attending school or a training program helps people invest in which of the following?

Accepted Answer

human capital

Question 7

An increase in technology would cause the PPC to do what?

Accepted Answer

move outward

Question 8

what can you use to make a cost/benefit analysis?

Accepted Answer

decision making grid

Question 9

Which country makes more guns than butter?

Accepted Answer

North Korea

Question 10

Which FOP would a diamond be?

Accepted Answer

land

Question 11

The study of how individuals, firms, and nations can best allocate their resources is called

Accepted Answer

economics

Question 12

If a factory owner uses some of her profits to purchase new machinery she is investing in

Accepted Answer

capital goods

Question 13

The next best alternative given up when you make a decision is called. . .

Accepted Answer

opportunity cost

Question 14

Which of the following motivates entrepreneurs to take risks and start new businesses?

Accepted Answer

profit

Question 15

When the marginal benefits of a decision equal or exceed the marginal costs, it is called. . .

Accepted Answer

a rational decision

Question 16

Why is specialization important?

Accepted Answer

It leads to higher efficiency.

Question 17

Natural resources such as wheat, water, and iron ore would be considered which resource?

Accepted Answer

land

Question 18

EHich factor of production would a forest be?

Accepted Answer

land

Questions 18