Econ Ch. 1

Japan, with an aging population, has had difficulty replacing people with machines. true false

false

People's needs are limited. true false

false

People's skills, abilities, health, knowledge, and motivation all add up to entrepreneurship. true false

false

Consumers are expected to read the full information about a product before making a purchase. This is an example of a consumer's opportunities. ​rights. habits. responsibilities.

opportunities

Opportunity cost refers to the dollar amount attached to a good or service. the value of the next best alternative. the cost of not expanding production. ​the cost of labor when production is expanded or changed.

the value of the next best alternative.

Economic growth is an increase in a nation's output of goods and services over time. true false

true

Scarcity is an economic problem with which all societies are faced.​ true false

true

Separation of tasks to be performed by different workers is division of labor. true false

true

How many distinct factors of production do economists recognize? One Two Three Four

4

According to this production possibilities curve, if the country Alpha chose to produce 40 units of cars, how many units of clothing could it produce?​

400

In all societies, government decides what to produce. true false

false

Give an example of how you might personally participate in a product market.

If I where to use a soda machine and put money in and get a soda out

Which of the following statements best describes the purpose of the production possibilities curve? It predicts the future production of a nation. It identifies trends in production. ​It shows which products are most profitable. It identifies all possible combinations of goods and services an economy can produce.

It identifies all possible combinations of goods and services an economy can produce.

In the mythical country Alpha, an entrepreneur has introduced a new technology that makes manufacturing twice as efficient as before. How is this likely to affect the production possibilities frontier? ​It would not change the frontier. ​It would make the frontier smaller. It would change the shape of the frontier. It would expand the frontier.

It would expand the frontier.

Explain the relationship between choices and scarcity as illustrated in the figure.

The scarcity of something leads to what decisions or choices you will make next.

A car is an example of a a. durable good b. nondurable good c. capital good d. service

a

A nation's wealth is determined by its a. accumulation of all tangible and intangible resources. b. natural resources. c. accumulation of all tangible products. d, product possibilities frontier.

a

When deciding how to use resources, you need to evaluate the costs and benefits of each choice to decide which meets your criteria. These are called a. trade-offs. ​b. opportunities. c. resource frontiers. d. priorities.

a

Which of these is most closely associated with opportunity cost? a. consumerism b. trade-offs c. entrepreneurs d. productivity

b. trade offs

Which of these do economists use to illustrate combinations of output?​ ​a division of labor a factor of production a production possibilities curve a cost-benefit analysis

a production possibilities curve

Economic growth is most closely associated with an increase in a. goods and services. b.​economic interdependence. c. opportunity cost. d. capital and labor.

a. goods and services

When a nation's total output increases over time, the nation is experiencing a decrease in gross domestic product. economic growth. economic interdependence. an expansion of the possibilities curve

an expansion of the possibilities curve.

A can of soup is an example of a​ a. durable good. b. nondurable good. c. capital good. ​d. service.

b

Which of the following examples illustrates the concept of opportunity cost. a. Chance (the Rapper) chooses to go to New York for Christmas and misses time with his friends in Houston, Atlanta, and Vegas. b. Ed (Sheeran) goes to Eddie V's for dinner, because it's his girlfriend's favorite, even though he wanted Whataburger, which is his favorite. c. Ace Hood woke up in the new Bugatti. d. Sharkeisha spends all her time Friday night studying for her physics test and isn't able to do anything with her friends.

b

Which of the following helps determine something's value?​ utility beauty scarcity both utility and scarcity

both utility and scarcity

What is the difference between land and capital? a. Both are factors of production. b.Land is necessary to open a new business. c. Capital is man made while land is a natural resource. d. Capital consists of mostly durable goods.

c

Which of the following descriptions best explains the meaning of opportunity cost?​ a. the initial cost of starting a new business b. the cost of business failure c. the cost of choosing one alternative over another d.the risk associated with producing a new item

c. the cost of choosing one alternative over another

When a business needs to decide whether a certain action is worth the cost, the most helpful analysis would be a(n) a. production possibility comparison. b. cost-benefit analysis. c. economic model. ​d. needs assessment.

cost benefit anyalysis

Which of the following would result in a change in the production possibilities frontier in the mythical country Alpha? a. an influx of immigrants from other countries b. the discovery of an abundant natural resource c. a long drought d. all of the listed answers

d

A car is an example of a​ durable good. ​nondurable good. capital good. service.

durable good.

Which of the factors of production involves taking risks and combining resources to produce a good or service?​ ​land capital labor entrepreneurs

entrepreneurs

Both goods and services are counted as wealth. true false

false

Economic growth causes the production possibilities frontier to contract. true false

false

Economic growth usually can be achieved without investing in new resources. true false

false

The most comprehensive measure of a nation's wealth is provided by its gross domestic product. TINSTAAFL rating. product possibilities curve. capital goods.

gross domestic product.

Paradox of value refers to the a. high value of a nonessential item and the low value of an essential item. b. high value of an essential item and the low value of a nonessential item. c. contradiction of what consumers want and what they need. d.contradiction between gross domestic product and market value.

high value of a nonessential item and the low value of an essential item.

The amount of output in a specific amount of time with a given amount of resources is referred to as productivity. human capital. ​efficiency. investment risk.

productivity

The efficient use of scarce resources leads to an increase in productivity. ​investment. scarcity. capital.

productivity

Consumers waiting in long lines for a new product is an example of consumerism. consumer rights. consumer responsibilities. ​scarcity.

scarcity

Dave gets a job at a grocery store, which pays him an hourly wage in exchange for his labor. Dave is participating in entrepreneurship. human capital. the product market. the factor market.

the factor market.

Economics is best defined as the study of how societies deal with ​the factors of production. the problem of scarcity. the paradox of wealth. ​the division of labor.

the problem of scarcity.

Societies are faced with which three basic questions about production of goods? what, how, and why what, where, and when what, how, and for whom when, where, and for whom

what, how, and for whom

The study of economics involves​ ​explaining how people deal with scarcity. studying how things are made, bought, sold, and used. explaining how incomes are earned and how jobs are created. all of the above.

​explaining how people deal with scarcity.

Division of labor is practiced because companies do not want workers to talk to one another. it increases efficiency by ensuring that all workers become good at every task. ​it increases efficiency by ensuring that workers become good at specific tasks. ​it prevents specialization.

​it increases efficiency by ensuring that workers become good at specific tasks.

Consumers are powerful because hey have more rights than corporations. they help decide a business's opportunity costs. ​they drive decisions about what to produce. their interests force producers to behave ethically.

​they drive decisions about what to produce.