Economics Review

Question 1

A point that lies outside of the production possibilities curve

Accepted Answer

Is not attainable with current resources, technology,& labor

Question 2

Which choice below correctly identifies factors of production?

Accepted Answer

land, labor, and capital

Question 3

In a command economy, natural resources are usually controlled by

Accepted Answer

government

Question 4

Which choice below correctly identifies factors of production?

Accepted Answer

land, labor,and capital

Question 5

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

Accepted Answer

Overall productivity rises

Question 6

Which example of productive resources is matched correctly?

Accepted Answer

capital and oil tanker

Question 7

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

Accepted Answer

traditional

Question 8

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

Accepted Answer

Where shall goods and services be produced?

Question 9

Land, water, forests, and minerals are examples of

Accepted Answer

natural resources

Question 10

America participates in what type of economy?

Accepted Answer

mixed-market

Question 11

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

Accepted Answer

individuals and businesses

Question 12

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

Accepted Answer

Oligopoly

Question 13

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

Accepted Answer

Sole Proprietorship

Question 14

An economic problem that everyone faces is

Accepted Answer

scarcity

Question 15

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

Accepted Answer

finishing the book

Question 16

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

Accepted Answer

capital goods

Question 17

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

Accepted Answer

Consumers will purchase at different prices

Question 18

In a command economy, natural resources are usually controlled by

Accepted Answer

government

Question 19

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

Accepted Answer

A highway

Question 20

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

Accepted Answer

of The law of demand

Question 21

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

Accepted Answer

Economic Stability

Question 22

Economics can best be defined as

Accepted Answer

study of satisfying unlimited wants with scarce resources

Question 23

How might the development of the internet increase productivity?

Accepted Answer

Businesses have greater access to resources

Question 24

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 25

Which of these would deter [discourage] inflation?

Accepted Answer

an increase in interest rates

Question 26

An entrepreneur is someone who

Accepted Answer

combines and organizes resources for production

Question 27

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

Accepted Answer

Monopolistic Competition

Question 28

An investment in human capital is an investment in

Accepted Answer

labor

Question 29

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

Accepted Answer

purchasing carpet cleaning equipment

Question 30

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

Economics Review

Questions 30

Economics Review

Questions 30