Economics test

Short Answers

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Based on what you know about production possibilities, what would you expect the numbers in the second column of this table to be (reading from top to bottom)?

0; 200; 350; 450; 500; 525

Give an example of an economic decision you have recently made? Identify what you chose and what your opportunity cost was.

Choosing a college that gave the most money; opportunity cost is not having a major of choice or loving the school

To save money, Taylor decided not to go to a concert where her favorite musician was performing. What was the opportunity cost of that decision?

Having fun at the concert

Explain how the three main factors of production and how they were used to build your school

Land - space provided, water; Labor - teachers, janitors, principals; Capital - Tuition, School

Give at least 3 examples of trade-offs that people are likely to make when buying a home

Location, Price, Type of Home (condo, house, apartment)

List some examples of physical capitol a restaurant needs to operate

Restaraunt building itself, stoves, ovens, microwaves

Which of the following would an entrepreneur do first when starting a new venture?

identify an unmet want

Identify the potential factor of production shown in this photo.

land

In the example shown here, what is the marginal cost of changing from two hours of studying to three hours of studying?

losing an hour of sleep

What is the opportunity cost of not going to college?

low unemployment

Which of the following represents an underutilization of the economic resources shown here?

10 million shoes, 15 million tons of watermelons

In what year was the efficiency of the U.S. economy at its lowest point?

2008

To conduct a cost/benefit analysis, a sensible person would MOST LIKELY

Compare marginal costs to marginal benefits

What would be opportunity cost of driving to California for vacation instead of flying? (stop at diff. places along way sight seeing etc.)

Get to see more places along the way by stopping in different places.

Which of the following is true about scarcity?

Scarcity affects all societies

In the quotation above, "butter" refers to

Social Welfare Spending

Which of the following causes a production possibilities frontier to shift to the right?

The economy grows

Why do you think there were long lines of cars in this photo from 1973?

There was a shortage of gas

After considering her different options, Amelia decides to buy fat-free ice cream. What is the benefit?

a dessert that is relatively low in calories

A point on a production possibilities frontier represents

a point at which an economy is using all resources most productively.

The clothing shown in the photograph is BEST described as an example of

a want

Which of the following is NOT an example of factors of production in the graphic?

financial resources

What trade-off would a person make by choosing the option on the left?

ease in favor of exercise

What trade-off is shown in this cartoon?

size of car vs. fuel efficiency

Based on this table, each time this country moves more resources away from producing shoes towards growing watermelons,

the cost of growing additional watermelons increases.