What is the relationship between productivity and earnings?

the more productive yo uare, the more money you make

Which is an example of entrepreneurship?

a person who starts an online business

Which is true about rational economic decisions?

marginal benefits exceed marginal costs

What would be one way to shift the PPC to reach point D?

Become more productive/efficient

Henry deposits money into his account instead of spending it. What's his opportunity cost?

the enjoyment of what that money could have bought

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Economics Unit 1

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A quiz over the fundamental economic concepts for a high school economics class.

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Questions 15

Answers

1
What are two advantages market economies have over command economies?
more control over prices and wages
more limits on profits and public goods
more freedom and efficiency
more security and equity
2
What is the relationship between productivity and earnings?
the less productive you are, the more you make
the more productive yo uare, the more money you make
the more you pay people, the more productive they will be
there is no relationship
3
How are most public goods and services paid for?
usage fees
charitable donations of individuals
charitable donations of corporations
taxes
4
What must the government protect in order for people to take risks with money?
The Pursuit of happiness
property rights
Liberty
Life
5
Which point on the curve represents inefficient use of resources?
A
B
D
C
6
Which is an example of entrepreneurship?
a person who buys land and builds a new house
a person who takes a job at a large corporation
a person who starts an online business
a person who invests in computer stocks
7
Which is true about rational economic decisions?
marginal benefits exceed marginal costs
opportunity costs are balanced
opportunity costs are less than marginal benefits
marginal costs exceed marginal benefits
8
What basic economic problem does the US share with all other nations?
scarcity of resources
lack of public services
too much government control
lack of technology
9
What is an effect of deregulation?
worse customer service
fewer choices
lower costs
higher costs
10
What would be one way to shift the PPC to reach point D?
Borrow more money
Become more productive/efficient
Make more stuff
Hire more people
11
How are economic decisions made in a command economy?
Producers
Government
Consumers
Supply and Demand
12
Leo and alex have a car washing business. What is the best way for them to work?
Leo does all the washing one day and they switch
Leo waxes for alex and alex waxes for leo
They wash the cars together
Leo washes, Alex waxes
13
To obtain goods and services in a market economy, most people rely on what?
communal ownership
voluntary exchange
barter
government regulations
14
Henry deposits money into his account instead of spending it. What's his opportunity cost?
a better chance of going to college
the enjoyment of what that money could have bought
the interest he will earn
the opportunity to please his parents
15
An assembly line is an example of what?
marginalization
specialization
inefficiency
diversification

Economics Unit 1 Flashcards | StudBud