Duplicate of Fundamental Economics Review

Question 1

Jim - Job A $50,000/year & 2 wks of leave. Job B $60,000/year & no paid leave. He chooses B.

Accepted Answer

Jim's opportunity cost is everything he gave up at job A

Question 2

What type of economy is North Korea?

Accepted Answer

command

Question 3

Which of the following is NOT a type of economic system?

Accepted Answer

oligarchy

Question 4

Which of the following is NOT one of the 3 basic economic questions?

Accepted Answer

Why am I producing?

Question 5

"Firms Begin Producing New Computers." What basic econ question is this headline representing?

Accepted Answer

what to produce

Question 6

Which of the following is an example of capital?

Accepted Answer

shovel

Question 7

Tomeka chose to go to the movies with friends instead of eat dinner with her family. Opp Cost?

Accepted Answer

Time with family at home.

Question 8

What is scarcity?

Accepted Answer

having too little of something

Question 9

Jane began her own business. What might have motivated her to do this?

Accepted Answer

creating jobs

Question 10

Which is NOT something governments typically do in market economies?

Accepted Answer

set prices

Question 11

Which provides the greatest incentive for entrepreneurs to take risks?

Accepted Answer

profits

Question 12

A rational decision occurs when marginal benefits _______ or ______ marginal cost.

Accepted Answer

equal; exceed

Question 13

What is required for specialization to occur?

Accepted Answer

educational training

Question 14

Which is a human resource that Ms. Johnson could use for her art gallery?

Accepted Answer

A series of paintings by a prominent local artist

Question 15

Opportunity cost is defined as

Accepted Answer

the value of the next alternative given up when you choose

Question 16

What is the definition of productivity?

Accepted Answer

relationship between inputs to outputs

Question 17

Scarcity lead to people having to make ______________.

Accepted Answer

choices.

Question 18

When labor is specialized, then output will _______.

Accepted Answer

increase

Question 19

Builders Inc. purchases land & hires 400 workers to build a mall . Builders Inc. represents

Accepted Answer

entrepreneur

Question 20

Choose the characteristics of the market economic system. (Can be more than one)

Accepted Answer

consumer sovereignty, private ownership, profit motive, competition

Question 21

Al & Dyl each bake pies & cakes, but it takes too long. They may LIKELY improve productivity by

Accepted Answer

Dyl makes cakes and Al makes pies

Question 22

Which of the following is NOT a role of the government in a market economy?

Accepted Answer

prevent competition

Question 23

The ability of consumers to purchase what they want is consistent with the economic goal of

Accepted Answer

freedom

Question 24

When a store dedicates more shelves to selling a new product, what is their opportunity cost?

Accepted Answer

the chance to sell an old product in that space

Question 25

Marginal cost and marginal benefit is defined as _______.

Accepted Answer

the cost/benefit of adding one.

Question 26

What is considered a rational decision?

Accepted Answer

A decision that weighed the costs and benefits.

Question 27

Jill is deciding whether to buy a car. Using rational decision making, she should consider

Accepted Answer

the costs and benefits of buying a car

Question 28

What is the term for an economic system where the gov't makes almost all the econ decisions?

Accepted Answer

command

Question 29

Which of the following are economic goals of a command economy? Choose 2.

Accepted Answer

stability, equity

Question 30

Which of the following is NOT a factor of Production?

Accepted Answer

profit

Duplicate of Fundamental Economics Review

Questions 30

Duplicate of Fundamental Economics Review

Questions 30