Increased access to capital goods would likely have what effect on the production possibilities curve (PPC)?

a country's production possibilities would shift outward

Given the graph above which of the following is true

combination A results in an inefficient use of resources

Which statement below best describes why the production possibilities curve bows outward?

The op cost grows as productive resources are shifted to another industry

In economics the term "scarcity" is best illustrated by which of the following situations?

producers lack the productive resources needed to produce goods and service

Microeconomics focuses on

small economic units, such as individuals, firms and markets

Which of the following is the best example of money as a medium of exchange?

Using money to buy a plane ticket instead of trading

What are possible reasons for why income inequality exists in a particular society?

All are possible reasons for income inequality

You buy a $15 movie ticket and see a flick. Which of the following best describes the opportunity cost of your decision?

The test you could have studied for during the same time.

What are the factors of production?

Land, labor, capital and entrepreneurship

The primary difference between between voluntary and involuntary exchange is that

Involuntary exchange requires force, voluntary needs both parties to agree

Congress passed a law taxing car producers based on their pollutants released into the atmosphere. This is an example of

discouraging negative externalities

Which of the following is the best example of a public sector job?

construction worker that builds and maintains highways for the government

Which of the following best describes marginal cost?

the additional expenses you expend when performing one more unit of action

Which of the following is a problem with the barter system

Both people must have something the other wants.

Which of the following analysis accurately explains the tragedy of the commons?

People will take better care of things they own themselves

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Econ unit 1 basic economic concepts

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Answers

1
Increased access to capital goods would likely have what effect on the production possibilities curve (PPC)?
a country's production possibilities would shift outward
a country's production possibilities would shift inward
no change to a country's production possibilities
it is impossible to tell what impact investment would have on a ppc
2
Given the graph above which of the following is true
this business should produce more bikes
this business doesnt have the resources to produce 60 bikes and 100 skateb
the opportunity cost of each skateboard is constant
combination A results in an inefficient use of resources
3
Which statement below best describes why the production possibilities curve bows outward?
The op cost grows as productive resources are shifted to another industry
One country can always produce products more efficiently than others
The op cost remains the same as production shifts to another industry
it is easier to shift resources as production shifts to another industry
4
In economics the term "scarcity" is best illustrated by which of the following situations?
producers lack the productive resources needed to produce goods and service
consumers lack the money needed to buy goods and services
entrepreneurs lack the customers needed to earn a profit
laborers lack the skills needed to earn a promotion
5
Due to free riders not paying for goods, the government will do what to ensure public goods are available to all?
imprison people who will not pay for goods
Create a command economy
redistribute wealth for the poor to the wealthy
produce public goods for all.
6
Microeconomics focuses on
small economic units, such as individuals, firms and markets
international trade and finance
the economic impact of implementing fiscal and monetary policy
on the big picture, looking at the economy as a whole
7
Which of the following is the best example of money as a medium of exchange?
storing money in the bank
dividing a 20 dollar bill into two 10s
Using money to buy a plane ticket instead of trading
all of the above
8
What are possible reasons for why income inequality exists in a particular society?
All are possible reasons for income inequality
People have connections they make with others through their lives that help
People have different levels of education and take jobs that are in demand
People have different abilities, interests and skills
9
You buy a $15 movie ticket and see a flick. Which of the following best describes the opportunity cost of your decision?
the time spent watching previews before the movie
The $5 you would pay for popcorn
The test you could have studied for during the same time.
the time you spent deciding which movie to watch
10
Freedom of choice and competition are most commonly associated with which type of economic system?
communist
market
traditional
command
11
Which of the following situations below would NOT cause an outward shift of a county's production possibilities curve?
investing in physical capital
new and innovative technology
more training and educational opportunities for workers
a decrease in human capital
12
What are the factors of production?
Land, labor, scarcity, entrepreneurship
Land, labor, capital and entrepreneurship
Rent, wages, interest, profit
Land, needs, wants, capitals
13
The primary difference between between voluntary and involuntary exchange is that
Involuntary exchange requires force, voluntary needs both parties to agree
There is no difference
Involuntary exchange has more cost than benefits while voluntary does not.
Voluntary exchange can only work if externalities are present
14
The opportunity cost of moving production from 6 to 12 bikes is
1 go kart
2 go karts
4 go karts
3 go karts
15
On the graph, the opportunity cost of moving from combination C to combination B is
100 skateboards
40 skateboards
80 bikes
40 bikes
16
Congress passed a law taxing car producers based on their pollutants released into the atmosphere. This is an example of
protecting consumers
discouraging negative externalities
promoting competition in the market
protecting labor unions
17
Due to the shape of the ppc shown, what type of opportunity cost will this firm experience?
increasing opportunity cost
decreasing opportunity cost
constant opportunity cost
slight opportunity cost
18
In a mixed economy, which of the following would most likely be considered a role of the government?
to protect monopolies
to correct market failures
to control the use of productive resources
to ensure the wants and needs of all consumers are met
19
Investing in technology and physical capital is most related to
supply and demand
economic freedom
economic growth
opportunity costs
20
On a production possibilities curve, a point that falls outside the frontier line is considered____given their resources
ideal
impossible
efficient
resourceful
21
Which of the following is the best example of a public sector job?
A computer manufacturer that sells computers to the government
A company that constructs buses for city use
construction worker that builds and maintains highways for the government
Being a pastor of a church
22
Which of the following best describes marginal cost?
the additional expenses you expend when performing one more unit of action
the amount you pay for a good or service
The additional benefit you receive from performing one more unit of action
when consumers wants and needs exceed scare productive resources
23
People's education, skills/abilities, health and motivation are all part of what type of capital
physical
financial
natural
human
24
Which of the following is a problem with the barter system
It is expensive to trade without money
All of the above
the producer makes a profit
Both people must have something the other wants.
25
Which of the following analysis accurately explains the tragedy of the commons?
People work harder without incentives if they have a civic responsibility
People will take better care of things they own themselves
You will buy a good if the marginal cost is greater than marginal benefit
Positive externalities should be encouraged

Econ unit 1 basic economic concepts Flashcards | StudBud