apex

Which points on the production possibilities curve show a level of production that would be achieve only through further growth in the company ( D outside, C inside, A inside near the frontier, B outside near the frontier) A. Points B and C B. Points A and B C. Points C and D D. Points B and D

D

Which scenario describes the highest level of productivity? A. Producing 50 shoes using resources that cost $50 B. Producing 100 shoes using resources that cost $100 C. Producing 25 shoes using resources that cost $50 D. Producing 50 shoes using resources that cost $25

D

A business owner must decide whether to improve the benefits she offers her employees. She calculates that improving the benefits will cost the company an extra $1,000 per employee each year. This could prevent her from hiring as many new employees as she would like over the next few years. On the other hand, better benefits will help her hire more qualified employees who will stay with the company for longer. The extra $1,000 per employee the business would have to spend on added benefits is an example of a(n) _______ A. Marginal cost B. Marginal benefit C. Cost-benefit analysis D. Incentive

A

A car company is deciding on a location for a new factory. Its leaders finally agree on a plan to build the factory in a foreign country to take advantage of cheaper labor. Even though the plan is criticized by local activists and newspapers, the company moves ahead with it. Which element of the free enterprise system does this situation best reflect? A. Individual freedom of producers B. Limited role of the government C. Profit motive C. Competition

A

Friedrich Hayek advocated for an economic system based on: A. Allowing businesses to freely set and change prices B. Regulating businesses to protect consumers C. Ensuring fair economic outcomes for all citizens D. sharing the profits from all industries with workers

A

How did countries change their economies in response to John Maynard Keynes's ideas? A. They became more willing to regulate private businesses B. They produced business taxes to encourage job growth C. The eliminated welfare programs for the very poor D. They began to tax foreign imports at a much higher rate

A

Natural resources including trees and oil are part of which factor of production? A. Land B. Labor C. Scarcity D. Capital

A

One of Karl Marx's major criticism of market economies was that: A. businesses held too much power over workers B. citizens were forced to shared their wealth with others C. It was unfair to use taxes to take money from workers D. Government put too many regulations on business

A

What role do entrepreneurs play in the economic decisions a society makes? A. they organize resources to try to meet a society's wants and needs B. They educate societies about the importance of fulfilling needs instead of wants C. The ensure that all the factors of production are used to make products D. They decide whether a society should specialize on physical or human capital

A

Which description is best example of human capital? A. A miner with experience digging for coal B. A truck used to ship products to another state C. A new law regulating trade in a country D. A piece of land owned by the government

A

Which development would most reflect Karl Marx's belief in the economic system that he predicted would replace free market? A. A group of worker takes over a factory and shares its profits B. A business begins selling products in overseas markets C. A government eliminates all taxes on corporations D. A huge number of workers lose their jobs when a factory closes

A

Which economic idea did Adam Smith promote in The Wealth of Nations? A. Economies are strongest when workers have specialized skills B. Private companies should give up their property to groups of workers C. The best indicator of a strong economy is a large reverse of gold D. Governments should strictly control a country's economic activity

A

Which quote best represents a person performing a cost- benefits analysis? A. I want to hire an experienced candidate for a job, but she wants a high salary. Maybe I should hire somebody who will work for less money B. The roads outside my business are absolutely terrible. I should encourage my employees to write letters about the problem to the city council C. I should start growing my own food for my restaurant. I already have a lot of experience farming and growing plants D. The most profitable part of my company is my only retail shop. It provides customers with an easy way to access my products

A

Which situation best illustrates how production decisions are made in a traditional economy? A. A village elder teaches young farmers which crops to grow in different seasons B. A grocery store stops buying meat from farms that abuse animals C. A government panel orders factories to make more fuel- efficient cars D. A company designs designs a new laptop computer with features consumers want

A

A country has invested heavily in building cars and designing electronics. Which action would it most likely rake if it wanted to increase its level of economic specialization? A. Require businesses in the country to both build cars and design electronics B. Focus its future investments on designing electronics and stop building cars. C. Continue building cars and designing electronics while also investing in mining for gold D. Begin importing all of its cars and electronics from wealthier countries

B

A retailer spends $500 per month to keep its online shop active and updated. The store acquires shirts at a marginal cost of $5 per shirt. Each shirt sells for a marginal benefit of $10 per shirt. How many shirts would the retailer need to sell for its total costs to be equal to its marginal benefits. A. 0 B.100 C. 125 D.75

B

An economy that produces goods and services based on long-standing customs is a ______ A. mixed economy B. traditional economy C. market economy D. command economy

B

An investment in equipment helps a business increase productivity by: A. expanding the business into new markets B. providing new tools to make goods more quickly C. improving the location where the business operates D. bringing in more people to make a product

B

Complete the sentence: As division of labor increases, _______ increases as well A. Opportunity cost B. Specialization C. Voluntary exchange D. Physical capital

B

Growth has which positive effect for business? A. it ensures that opportunity costs will never exceed overall productivity B. It widens the area inside the frontier on a production possibilities curve C. It allows products to be sold in a wide variety of new markets D. it cuts down on the amount of capital investment needed for expansion

B

Investments can help a business increase productivity by: A. making it possible for the business to ignore opportunity cost B. offering the business more efficient ways to make goods C. eliminating the need for any input when creating products D. creating goods outside the production possibilities curve

B

Karl Marx's economic theories resulted in which global change? A. An increase in the amount of international trade B. An increase in the number of command economies C. A decrease in salaries for farmers and factory workers D. A decrease in government regulations on business

B

Societies make decisions about how to produce certain goods by: A. Determining which goods have the lowest levels of scarcity B. Considering whether companies or the government should make the goods C. Deciding which factor of production should be used to make the goods D. Differentiating between their physical and human capital resources

B

The main motivation for economic activity in a free enterprise system is _____________ A. helping communities B. Maximizing profits C. providing fair services D. supporting governments

B

Which economic concept allow businesses to freely buy and sell goods as they see fit? A. Opportunity cost B. Property rights C. Federal regulation D. Entrepreneurship

B

Which option best describes the main behavior that economics studies? A. People creating different governments around the world B. People making choices based on their limited resources C. People experiencing the physical symptoms of a disease D. People participating in a traditional musical performance

B

Which phrase best defines economic specialization? A. Limiting the amount of voluntary exchange B. Focusing on producing one type of good C. Meeting all of your needs on your own D. Operating with high opportunity costs

B

Which situation best describes an opportunity cost? A. A government increases taxes on all businesses operating in the new city B. A person who buys a new laptop doesn't have money to buy new headphones C. An employee who earns a. college degree is given a pay raise D. A business that develops a new technology is able to make a larger profit

B

Which situation best illustrates the concept of division of labor? A. A business hires employees who all have a wide range of skills B. A business hires employees who each specialize in one skill C. A business hires employees who are mostly self-sufficient D. A business hires employees who require training in most skills

B

Which statement best illustrates an example of economic specialization? A. A country attempts to become self-sufficient by producing all the cars it needs on its own B. A country forces uses on growing a specific type of crop for export instead of a wide variety of crops C. A country reduces its division of labor by encouraging all workers to develop many different skills D. A country promotes businesses that create many different products despite high opportunity costs

B

Which term best completes the outline? __________ economy - Government control over production - Limited private ownership of businesses - Little competition over profits A. Mixed B. Command C. Traditional D. Market

B

why are property rights important to a free enterprise system? A. They encourage businesses to focus on a specific type of service. B. They prevent rivals from copying a business's product. C. They limit the amount of property a single business can own. D. They establish fair prices for important goods and services.

B

A business can consider the possible advantages of an economic decision as well as its possible drawbacks by: A. analyzing its opportunity costs B. reducing its marginal benefits C. performing a cost- benefit analysis D. increasing its marginal cost

C

A business must decide whether to open a new office in China. If it opens the branch, it will increase its chances of selling a high volume of its products in China. On the other hand, the business will have to spend a lot of money to make the branch operational. What would be an opportunity cost for the business if it chooses not to open the new branch in China A. The business would be able to use the money it saves on other projects B. The business would increase its marginal benefits on each products it make C. The business would lose the chance to make more money in China D. The business would have to open a new branch in a different country

C

A business that wants to increase its productivity by acquiring tool that help it create products more efficiently would most benefit from an investment in _________ A. expansion B. marketing C. equipment D. facilities

C

A command economy is best described as an economy that: A. gives businesses complete freedom to produce and sell what they want B. gives both businesses and the government a role in economic C. gives the government complete control over production and prices D. gives people jobs based on their family history and role in the community

C

A country wants to create a fair economy for its people. The government takes control over the country's biggest companies and put groups of workers in charge. All citizens are encouraged to share the wealth produced in these companies equally This situation best reflects the influence of which economic thinker? A. Thomas Robert Malthus B. Adam Smith C. Karl Marx D. John Maynard Keynes

C

Businesses are important to a free enterprise system because they: A. prevent entrepreneurs from taking too many risks B. make legal decisions related to property rights C. Provide consumers with goods and services D. Enforce economic regulations to protect citizens

C

Consumers in a country are unhappy because they have very little access to high-speed internet. Which response would most likely occur if the country had a free enterprise system? A. Courts would determine which company is to blame for the poor internet service B. One company would be chosen by voters to provide Internet service C. Many different companies would compete to provide the best internet service D. The government would establish a public company to provide internet service.

C

One major advantage of creating a division of labor in a business is: A. every employee can be assigned to so almost any task B. companies become more self-sufficient than their competitors C. voluntary exchange between employees declines D. Employees do not need to spend time learning multiple skills

C

The economic concept pf scarcity refers to the idea that: A. People use many different factors of product to make goods B. People develop valuable knowledge and skills over their lifetimes C. People have limited resources to fulfill their unlimited wants D. People should take more risks when creating new business

C

What is a major difference between economic wants and economic needs? A. Wants play a larger role in the economic than needs B. Wants have a greater degree of scarcity than needs C. Wants are less important to survival than needs D. Wants can be fulfilled with less capital than needs

C

What was one of John Maynard Keynes's major economic beliefs? A. Businesses will be most productive if the government leaves them alone B. Taxes should be as low as possible to promote economic development C. Governments should be more involved in solving economic problems D. Workers should unite and create an economy in which wealth is shared

C

Which element of a command economy is also used in a mixed economy? A. trade between countries is strongly discouraged B. parents decide on the careers their children will pursue C. Governments provide economic services to citizens D. Corporation are legally treated as individual citizens

C

Which idea is an important element of the US free enterprise system? A. Businesses should work for the public good instead of for profit B.Each industry should be dominated by only one business C. the government should have limited role in the economy D. there should be limits on the kinds of goods consumers can buy

C

an opportunity cost is best described as: A. the increased costs associated with producing additional items B. the idea that people have unlimited wants and limited resources C. the possible opportunities lost when making an economic decision D. the maximum amount a consumer will pay for using a product

C

which factor plays the biggest role in motivating economic decisions in a command economy? A. A belief in the power of internationals cooperation B. A desire to maximize individual profits C. An interest in promoting the common good D. A commitment to a traditional way of living

C

During a period of growth, a business can expect to experience: A. An increase in opportunity costs B. a decrease in productivity C. a decrease in productivity costs D. an increase in productivity

D

Governments and businesses use incentives to: A. analyze the costs and benefits of an economic choice B. Reduce the effects pf scarcity when making an economic choice C. convince people to make certain economic decisions D. increase the opportunity cost of making an economic decision

D

Governments in free enterprise systems play which important role? A. Deciding which products will be produced each year B. Shutting down businesses that operate in foreign countries C. Setting minimum and maximum prices for consumer goods D. Creating safety regulations to protect consumers

D

How does specialization affect voluntary exchange between countries? A. It decreases voluntary exchange by creating a division of labor within countries B. It decreases voluntary exchange by reducing the value of a country's human capital C. It increases voluntary exchange by increasing the opportunity costs of trade D. It increases voluntary exchange by encouraging other countries to be less self-sufficient

D

In a market economy, decisions about which goods are produced are based on: A. What the government decides is important for society B. what health care organizations suggest will be best for citizens C. what the local community has made for generations D. what businesses believe will generate the more profits.

D

In a market economy, which group is most responsible for producing the goods people in society need? A. Government agencies B. International organizations C. Family members D. Private businesses

D

In economics, the term productivity refers to: A. money invested in a business to promote its success in the future B. a graph that shows the relationships between a number of different resources C. the amount of growth a business demonstrates over a long period D. the amount of output compared to the input needed to create something

D

In the US free enterprise system, property rights give inventions the right to: A. ignore government regulations related to their inventions B. sell their inventions in foreign markets without paying taxes C. store their inventions on public property for no cost D. stop a business from copying one of their inventions

D

John Maynard Keynes and Karl Marx would agree most about the answer to which question? A. Is it right for strong countries to control weaker colonies B. Are precious metals a good measure of economic strength? C. Should government take total control over economies? D. Do free market economies create problems for workers

D

Specialization can help a country's economy by: A. increasing its overall opportunity costs B. reducing the level of division in its labor force C. increasing the cost of its voluntary exchanges D. reducing its need to be self-sufficient

D

Specialization results in the division of labor because: A. it reduces the amount of voluntary exchange between employees B. it increase the opportunity cost for hiring a new employee C. it produces employees who are generally self-sufficient D. it gives each employee a particular area on focus and expertise

D

The free enterprise system is a type of economy that: A. protect consumers by making sure businesses always act ethically B. uses gov. policies to reduce the price of important consumer goods C. does not strictly enforce intellectual or private property rights D. allows businesses to operate without much gov. interference

D

Which economic theorist argued that a product's value should include the amount of labor needed to create it? A. Jean-Baptiste Say B. Thomas Robert Malthus C. Adam Smith D. David Ricardo

D

Which person is an example of an entrepreneur? A. A lawyer who represents clients with very little money B. A doctor who completes medical training C. An architect who designs buildings for the government D. A designer who starts a new fashion company

D

Which problem will a country that tries to create a self-sufficient economy most likely experience? A. The country will become too dependent on voluntary exchange with other countries B. The country will reduce its opportunity costs for selling goods to other countries C. The country will have to create a division of labor for all workers within its borders D. The country will be less efficient than if it specialized in a smaller number of products

D

Which situation best illustrates a business increasing its productivity? A. A restaurant tries to improve its reputation by firing all its chefs and hiring well-known replacements B. A lumbar company is forced to raise its prices as it becomes more expensive to cut down trees C. software company hires a marketing firm to increase the number of people who buy its products. D. A motor vehicle company doubles the number of trucks it can make using the same number of employees.

D

Which situation would reduce the scarcity of a product? A. Demand for the product rises, and more people want to buy it B. One of only two factories that made the product shuts down C. A foreign country begins exporting the product in high volume D. The natural resources used to make the product begin to run out

D

Which statement best describes a business creating an incentive? A. A factory increases production to respond to growing demand B. A car dealership increases the price on a car when it becomes more popular C. A retailer stops carrying a product that doesn't sell will in its store D. A restaurant offers a discounted price on a new type of dish

D

Which title would best fit this diagram? Command -> Mixed -> Market A. Economies from most private ownership to least private ownership B. Economies from most traditional to least traditional C. Economies from most competitive to least competitive D. Economies from most regulated to least regulated

D

which option is an example of labor as a factor of production? A. A government increasing taxes B. An industrial assembly line C. A tree used to make paper D. An artist painting a picture

D

Which speaker most supports the ideals of a traditional economy? Speaker 1: Economies today are too complicated. People should have simple lives and just do the jobs their families have done for generations. Speaker 2: Private corporations care only about profits, not about people. The government should take over the corporations and put the workers in charge Speaker 3: The government needs to stop interfering with the economy, Big companies are rich because they do a good job providing the goods everyone needs Speaker 4: People are too extreme in their economic viewpoints. There should be a middle ground between total corporate freedom and the government running the economy

Speaker 2