Economics Review

Question 1

Economics can best be defined as

Accepted Answer

study of satisfying unlimited wants with scarce resources

Question 2

Market structure that has all conditions of perfect competition except identical products is

Accepted Answer

Monopolistic Competition

Question 3

Cooper had $5,000 in his saving account when his bank declared bankruptcy. Which is true?

Accepted Answer

Cooper’s savings will be protected by the FDIC

Question 4

An economic problem that everyone faces is

Accepted Answer

scarcity

Question 5

Land, water, forests, and minerals are examples of

Accepted Answer

natural resources

Question 6

Machines and tools, that are used for the production of finished goods/services are

Accepted Answer

capital goods

Question 7

A point that lies outside of the production possibilities curve

Accepted Answer

Is not attainable with current resources, technology,& labor

Question 8

Which of these would deter [discourage] inflation?

Accepted Answer

an increase in interest rates

Question 9

The phrase ‘the quantity demanded of a product varies inversely with its price’ is definition

Accepted Answer

of The law of demand

Question 10

While shopping, you like both a red hat and a blue hat. You buy the red hat. The blue hat is

Accepted Answer

Opportunity cost

Question 11

The Gov’t tries to reduce unemployment/inflation&promote economic growth.This is an example of:

Accepted Answer

Economic Stability

Question 12

How might the development of the internet increase productivity?

Accepted Answer

Businesses have greater access to resources

Question 13

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

Accepted Answer

Where shall goods and services be produced?

Question 14

Which of the following economic systems is characterized by the LEAST amount of change?

Accepted Answer

traditional

Question 15

In a command economy, natural resources are usually controlled by

Accepted Answer

government

Question 16

Which of these is something whose construction MOST LIKELY would be done by the government?

Accepted Answer

A highway

Question 17

An entrepreneur is someone who

Accepted Answer

combines and organizes resources for production

Question 18

Which choice below correctly identifies factors of production?

Accepted Answer

land, labor, and capital

Question 19

The amount of output produced by a given amount of inputs increases, the MOST LIKELY result is

Accepted Answer

Overall productivity rises

Question 20

Jill returns a book to the library before finishing it to avoid a fine, her opportunity cost is

Accepted Answer

finishing the book

Question 21

In a command economy, natural resources are usually controlled by

Accepted Answer

government

Question 22

Which choice below correctly identifies factors of production?

Accepted Answer

land, labor,and capital

Question 23

America participates in what type of economy?

Accepted Answer

mixed-market

Question 24

When economists refer to “demand,” they mean which of the following? How much

Accepted Answer

Consumers will purchase at different prices

Question 25

Stacy opens a web site fashion company, has unlimited liability, but all the decision making.

Accepted Answer

Sole Proprietorship

Question 26

In a market economy, the basic economic questions are answered by

Accepted Answer

individuals and businesses

Question 27

3 companies dominate the market for hand tools.(Draper, Stanley, &Craftsman) This market is

Accepted Answer

Oligopoly

Question 28

Which of the following BEST represents capital investment if you own a carpet cleaning company?

Accepted Answer

purchasing carpet cleaning equipment

Question 29

Which example of productive resources is matched correctly?

Accepted Answer

capital and oil tanker

Question 30

An investment in human capital is an investment in

Accepted Answer

labor

Economics Review

Questions 30

Economics Review

Questions 30