Finish the statement with the BEST choice: Scarcity will always exist because...

Wants are unlimited wile resources are limited

Which best describes a subsidy?

It decreases the prices of domestic goods.

What is an opportunity cost?

next best alternative you give up when making adecision

Why would a low price be considered an incentive to a consumer?

Low prices act as an incentive to buy more

What is an advantage of a market economy?

more individual freedom is available

Which definition most fits a capital resource?

a resource that is man-made & used to create other resources.

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B- Unit 5, Lesson 5 Test

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Questions 23

Answers

1
Which statement BEST shows that a country has a trade deficit?
a country's inflation increases
a country's unemployment rate increases.
country imports exceed exports
country exports exceed imports
2
Finish the statement with the BEST choice: Scarcity will always exist because...
Governments allow companies to produce whatever they want
wants are limited while resources are unlimited
Wants are unlimited wile resources are limited
natural disasters are unpredictable
3
Do falling income levels increase scarcity or decrease scarcity?
Increases Scarcity
Decreases Scarcity
4
Production is controlled by government
Market Economy
Command Economy
5
Which best describes a subsidy?
It decreases the prices of domestic goods.
It decreases taxes on exported goods.
It increases prices of domestic goods.
It increases taxes on imported goods
6
Does falling supply increase scarcity or decrease scarcity?
Increases Scarcity
Decreases Scarcity
7
Production is controlled by private farms
Market Economy
Command Economy
8
Prices are regulated
Market Economy
Command Economy
9
What is an opportunity cost?
the choice you make when making a decision.
how much it costs to do something
only exists when scarcity is high
next best alternative you give up when making adecision
10
Which best explains a negative incentive?
"Place trash in bin" sign.
Being fined for speeding.
"Don't step on the grass" sign
Reward for turning in a criminal
11
Decisions are made by individuals.
Market Economy
Command Economy
12
Which of the following does NOT describe Free Trade?
Jobs are outsourced
Few tariffs, barriers, and subsidies exit.
prices for goods are lower & variety appears on shelves
Best products available at the lowest prices
13
Do falling prices increase scarcity or decrease scarcity?
Decreases Scarcity
Increases Scarcity
14
Why would a low price be considered an incentive to a consumer?
Low prices discourage people from buying more.
Low prices are incentives for producers to stop selling items.
Low prices act as an incentive to buy more
Low prices encourages producers to sell more.
15
Do more buying options increase scarcity or decrease scarcity?
Decreases Scarcity
Increases Scarcity
16
Prices are determined by supply & demand
Market Economy
Command Economy
17
What is an opportunity cost if you go to college right out of high school?
making money at a job.
cost of getting a job.
the money you will earn from your degree after college
cost of going to college
18
Which best explains a positive incentive?
being punished for good grades
Being rewarded for good grades
being punished for bad grades
paying a fine
19
What is an advantage of a market economy?
Government controls production
more individual freedom is available
Grocery stores increase economic spending
A group of people controls production
20
Does rising demand increase scarcity or decrease scarcity?
Decreases Scarcity
Increases Scarcity
21
Decisions are centralized
Market Economy
Command Economy
22
Does more unemployment increase scarcity or decrease scarcity?
Decreases Scarcity
Increases Scarcity
23
Which definition most fits a capital resource?
a resource that is man-made & used to create other resources.
labor resources like factory workers
a resource from the planet
a resource that is made in a country

B- Unit 5, Lesson 5 Test Flashcards | StudBud