Unit 1 economics test

Which of the following is NOT a basic economic question?

WHEN to produce?

The United States Congress passes a law requiring that all businesses, regardless of size, pay 100% of employees' healthcare costs. What is a likely result of this action?

businesses may be forced to raise their prices

A person who purchases goods and services

consumer

Type of specialization in which each worker is assigned a small number of tasks

division of labor

In the above production possibilities frontier, what would cause production to move from point "X" to point "Y"?

economic growth

A person who attempts to start a new business

entrepreneurship

Entrepreneurship and labor interact in which of the following ways?

entrepreneurship makes decisions about the use of labor

All of the following are characteristics of market economic system EXCEPT... B.Private property rights C.Economic freedom D.Profit motive E.Government control

government control

The purpose of government in a command economy is to...

make major economic decisions

Which of the following economic systems is more likely to support the economic concepts of competition and profit motive?

market

Due to have limited resources, Canada must give up producing more corn when the nation decides to produce more grain. The statement reflects which or the following basic economic concepts

opportunity cost

The concept of voluntary exchange means

people freely and willingly engage in market transactions

The level of output resulting from a given level of input

productivity

Which of the follow resources would economists classify as "land"?

raw minerals in a South African mine

One of the government's roles in our market economy is that is the...

regulator of basic economic activity

Economic efficiency is making the best use of...

scarce resources

This economic concept refers to the basic condition that exists when unlimited wants exceed limited productive resources

scarcity

an individual decides to pay $8 to see a movie instead of buying and $8 meal, what is the opportunity cost of the movie?

the satisfaction missed by not eating the meal

Anything people consume beyond what is necessary for survival.

want

Juan offers to trade his Xbox one for Rods cell phone and Rod accepts. Assuming both products work perfectly, we can conclude that...

Both gained because the exchange was voluntary

How might firms BEST use marginal analysis to determine price and output when there are additional costs related to hiring a new worker?

Firms might maximize revenue by raising price or output

Which statement describes an opportunity cost that could result from the government regulating businesses?

Government regulations can lead to an increase of production costs

Our government can improve the standard of living of the American population by...

Investing more in human capital

Applying the concept of rational choice: If the number of highway patrol vehicles increases so that there is a greater probability of being caught speeding, what do you think will happen to the number of drivers exceeding the speed limit?

It will decrease because costs have increased

The nation of Brazil decides to spend more of its resources protecting the Amazon rain forest and less on funding education.What would be Brazil's opportunity cost for making this decision?

More funding for education

Rationing is a system under which an agency such as the government decides everyone's "fair" share. Rationing has often been used during wartime. If people receive a set ration regardless of the amount of work completed, how would this affect peoples' incentive to work?

People might feel less inclined to work

Which of the following scenarios would lead to improved productivity for a farmer growing corn?

The farmer builds an irrigation system which increases the outputs and his profits

Which of the following is illustrated by a production possibilities curve?

all combinations of two goods that can be produced

Which of the following illustrates the concept of "opportunity cost"? B."if I go back to college full time, I will have to give up my $30,000 a year job." C."let's see, should we go see a movie or go get a pizza?" D."increased government spending on the military will force a reduction in spending on welfare." E.All of the above

all of the above