Which choice is the best example of opportunity cost?

Mr. King decides to buy a mule instead of new clothes.

Consumer sovereignty is defined as ...

consumers choose which products will be produced

Which of the following is NOT a potential role of the government in a market economy?

Determine prices for all products

What are the four factors of production?

entrepreneurship, land, capital, labor

Which of the following is an example of human capital?

A teacher's knowledge on how to teach

One should ALWAYS make the economic decision when...

The marginal benefit exceeds the marginal cost

Mr. Goodwrench, an auto mechanic, requires capital resources. These are:

a garage, tools and a telephone

What does Point H represent?

An impossible level of production.

Why would the richest person in the world experience scarcity?

Because productive resources are limited.

How do we define opportunity cost?

the value of the next best alternative that is given up

Which is the best definition of scarcity?

unlimited wants outpace limited resources

An efficient economy is one in that ...

Uses its resources with very little waste.

The study of economics is concerned with:

making choices to use scarce resources efficiently

Human capital is defined as:

the knowledge and skills that a labor resource possesses

In a market economy ...

prices reflect scarcity and wants

What does the Production Possibilities Frontier tell us?

It shows the possible outcomes when two goods are produced.

Which of these is one of the three fundamental economic questions?

how to produce goods and services

What answer is the best example of a mixed economy?

Government sets a minimum wage for private business.

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Combined: Econ Fundamentals Formative + Economics Fundamentals - Fall 20

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Econ Fundamentals Formative : Econ Fundamentals Formative Duplicate of Economics Fundamentals: This is a Quiz to test our knowledge of the foundational ideas of #economics.

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Questions 39

Answers

1
Which options below are Two of the Nine ways of allocating scarce resources?
supply and demand, and leverage
command and control
authority and consensus
price and contest
2
Which choice is the best example of opportunity cost?
You buy a new jacket with birthday money.
You make a toy from leftover popsicle sticks.
Mr. King decides to buy a mule instead of new clothes.
Teachers take on the extra duty of driving buses.
3
Which choice is a capital factor of production?
Ms. Payne
wind
the technician
a computer
4
The resources used to make all goods and services are called the...
the production frontier
production tradeoffs
factors of production
natural resources
5
Consumer sovereignty is defined as ...
producers create demand for products
consumers choose which products will be produced
consumers determine how resources are allocated
producers advertise goods and services
6
Which of the following is NOT a potential role of the government in a market economy?
Correct market failures
Maintaining competition
Provide public goods
Determine prices for all products
7
What are the four factors of production?
labor, water, land, gold
entrepreneurship, land, capital, labor
land, labor, capital, gold
capital, oil, water, labor
8
The unintended or outside consequence of an economic choice is called an
unseen stumble
economic anomoly
excuse
externality
9
Which of these terms BEST represents the skills within the "entrepreneur" factor of production?
home owner
chef
employee
student
10
In a free enterprise system, what motivates individuals to start a business?
The risk of failure
The desire to make economic decisions
The need for job security
The desire to earn a profit
11
Which of the following is an example of human capital?
Flowers in a garden
A teacher's computer
A teacher's knowledge on how to teach
nurse giving medicine to a patient
12
Which economic system has a very low unemployment rate?
command
planned
market
mixed
13
One should ALWAYS make the economic decision when...
The total cost exceeds the total benefit
The marginal benefit exceeds the marginal cost
The total benefits are greater than the total cost
The marginal benefits are less than the marginal cost
14
When one decision is made, the next-best alternative given up is called:
comparative advantage
additive resource
opportunity cost
comparative disadvantage
15
What is the opportunity cost if we move from Point C to Point B?
300,000 pizzas
7,000 robots
both pizzas and robots
100,000 pizzas
16
The fundamental economic problem faced by all societies is ...
scarcity
unemployment
inequality
poverty
17
Mr. Goodwrench, an auto mechanic, requires capital resources. These are:
customers, tools and land
a garage, tools and a telephone
a garage, lenders and customers
money, a garage and employees
18
The term "land" in factors of production means ...
dirt
real estate
unfinished goods
natural resources
19
What does Point H represent?
An impossible level of production.
Our long-term hopes and dreams.
The maximum amount we can produce right now.
Nothing
20
Why would the richest person in the world experience scarcity?
Because workers wages keep going up.
Because productive resources are limited.
Rich people do not experience scarcity.
Because prices are too high.
21
Ben's family got a dishwasher to save time for fun activities. What kind of input is this?
efficiency capital
human capital
physical capital
labor capital.
22
How do we define opportunity cost?
the value of the next best alternative that is given up
spending money on what you want
marginal cost for non-fraudulent exchanges
all other alternatives you give up to do what you want
23
Which is the best definition of scarcity?
a shortage of goods
not having enough money to buy stuff
the allocation of goods and services
unlimited wants outpace limited resources
24
In a command economy, the key driver of the economy is...
entrepreneurs
businesses
the government
consumers
25
Which of the following is an example of "Land" input?
Water from a lake
business owner opening up a new ice cream store
Laptop computer
A Lawyer's knowledge of the law
26
Which of the following is an example of physical capital?
A doctor's knowledge on how to prescribe medicine
An oil drill
Oil in Texas
Gold found in the Georgia mountains
27
An efficient economy is one in that ...
Makes a high profits for each product.
Has low levels of unemployment.
Uses its resources with very little waste.
Gets more work done in less time.
28
Katherine must decide between spending time cheering or studying. What concept is she facing?
supply & demand
fiscal policy
competition
scarcity
29
The study of economics is concerned with:
efficiently allocating society's products
making choices to use scarce resources efficiently
making sure businesses succeed
customs and traditions
30
Which choice is an example of a LABOR factor of production?
the members of assembly line 2
ALL of the picketers outside the factory
goods and services that are produced
learning new skills
31
Human capital is defined as:
how much money someone earns
the knowledge and skills that a labor resource possesses
hiring new people
the number of people in the workforce
32
Profit motive is defined as:
how a business creates income
a business's desire to spend money
a desire to make money
the desire to work
33
In a market economy ...
governments intervene
governments plan production
prices reflect scarcity and wants
governments interfere
34
For a factor of production to be scarce, it must be...
unlimited and cheap
rare and expensive
unevenly allocated
limited and desirable
35
Jason works and bought a video game rather than buying a phone. Which is the opportunity cost?
phone
his job
the time he spent at work.
video game
36
What does the Production Possibilities Frontier tell us?
It shows the possible outcomes when two goods are produced.
It predicts when unemployment is rising.
It maps trade between two nations.
It tells us when we are in recession.
37
An economic system formed around habits, customs and religion is ...
traditional system
archaic system
natural system
primitive system
38
Which of these is one of the three fundamental economic questions?
how to produce goods and services
how goods are allocated
how much goods and services will cost
how will goods and services be received
39
What answer is the best example of a mixed economy?
Farmers engage in a barter economy.
Scarcity is experienced by all.
All factories produce for the government's needs.
Government sets a minimum wage for private business.

Combined: Econ Fundamentals Formative + Economics Fundamentals - Fall 20 Flashcards | StudBud