Economics Honors Semester 1 - Three Economic Questions

Which consideration must be addressed when deciding for whom to produce? Who can be most creative with the product? Who has the largest resource pool? Who has the greatest need? Who can bring in the greatest profit?

Who has the greatest need?

Which part of Suarez Farms represents the capital invested in the business? fifty acres of farmland on which crops grow farming skills of the Suarez family and hired workers farm equipment the Suarez family owns leadership of the farm's owners

farm equipment the Suarez family owns

Fantastic Snack Company has spent months developing a new type of snack chip, but the chips are not selling. Which of the following is the most likely mistake Fantastic Snack Company made? conserving too valuable resources spending capital it did not have not researching production methods not meeting the wants of its consumers

not meeting the wants of its consumers

Which of the following best illustrates the importance of addressing the three questions of economics? People's desires and needs are always changing. Businesses need to use limited resources wisely. Traditional methods of production are outdated. Businesses need to limit production.

Businesses need to use limited resources wisely.

Which statements correctly identify limitations of the factors of production? Check all that apply. Economies must consider their limitations when answering the three questions of economics. Land is a factor of production that is limited only by the amount available. Capital includes all money and physical facilities needed to create a product. Labor is a factor driven by the size of the population, education, and standard of living. An economy can function well when producing outside its limitations.

Economies must consider their limitations when answering the three questions of economics. Capital includes all money and physical facilities needed to create a product. Labor is a factor driven by the size of the population, education, and standard of living.

The three questions of economics are based on decisions made by economies. What statement best describes why economies must make these decisions? Economies must make these decisions because resources are unlimited, but production must be limited. Economies must make these decisions because resources are limited. Economies must make these decisions because consumers cannot make decisions on their own. Economies must make these decisions to prevent producers from over-producing.

Economies must make these decisions because resources are limited.

Based on what you have read about Suarez Farms, what are the costs and benefits of growing organic vegetables? Check all that apply. Growing organic vegetables takes less time, which will keep costs lower. Growing organic vegetables helps improve the health of soil, allowing for a healthier crop. Growing organic vegetables may limit the resources available for new farm equipment. Growing organic vegetables requires more land, limiting how much can be grown. Growing organic vegetables is more expensive than traditional methods.

Growing organic vegetables helps improve the health of soil, allowing for a healthier crop. Growing organic vegetables may limit the resources available for new farm equipment. Growing organic vegetables is more expensive than traditional methods.

_________ consequences can result when an economy does not answer the three economic questions. Positive Negative Neutral

Negative

Based on what you have read, provide two positives and two negatives the Suarez family would face if they switched to organic farming.

Sample response: Organic farming would have higher costs, and would be more complex than conventional farming. However, the Suarez family could charge a higher price for organic produce. This type of farming also would be better for the land. Which pros and cons did you include? Check all that apply. It could cost more to grow organic crops. It could be more complex. It would still require farm equipment. It could let the Suarez family charge higher prices. It could be better for the land.

Based on what you have read, provide three reasons why Super-Phonic decided to make a specific type of phone in a specific way.

Sample response: Super-Phonic believes that demand among its target customers is strong for its specific products and services. The company thinks it is better than its competitors at providing this type of phone and service at a reasonable rate. Finally, Super-Phonic believes that adding smartphone features to its phones would make them more expensive and less reliable. Which reasons did you include in your response? Check all that apply. providing reliable service keeping prices low making durable phones avoiding unnecessary features meeting strong customer demand

Which of the following best illustrates deciding how to produce a specific product? Should we produce jeans with expensive machinery or less expensive labor? Can we market our jeans to teenagers or focus on people in their twenties? Do we have enough customer support to charge more for our jeans? Are jeans still "in," or should we develop a line of skirts instead?

Should we produce jeans with expensive machinery or less expensive labor?

A society decides that it needs to produce more corn to feed the growing population. What must it do before it begins the production process? analyze existing resources, such as water availability determine how people will receive the surplus crops study the profitability of increasing corn production understand who is in a position of authority to produce more

analyze existing resources, such as water availability

If a specific economy has extra capital resources available, it will be able to produce top-quality goods and services. continually look to expand and invest. be able to produce more goods and services needed and wanted by society. spend more to meet the needs of its citizens.

be able to produce more goods and services needed and wanted by society.

Which of the following will be accomplished by efficient allocations of the factors of production? guaranteeing economic success understanding whether a product will fail fulfilling many needs and wants of society replenishment of limited resources

fulfilling many needs and wants of society

Economies must answer the three economic questions because resources are _________ abundant limited common

limited

Which of the following is an example of a capital resource? coal machinery time horse

machinery

Which factors are considered when deciding how to make goods and services? Check all that apply. determining who has the greatest need finances of prospective buyers methods traditionally used to make a good ways to produce items at a lower cost or higher quality ways to make the biggest profit

methods traditionally used to make a good ways to produce items at a lower cost or higher quality ways to make the biggest profit

Based on what you read in the fact sheet, identify the type of customer the company is hoping to reach. Super-Phonic Systems wants to sell phones to customers who: expect the latest smartphone technology. need affordable phone service in remote areas. care more about attractive designs than reliability. will pay top prices for features such as web-surfing.

need affordable phone service in remote areas.

Suarez Farms and Super-Phonic Systems had some difficult decisions about what to make, who to make it for, and how to make it. Each business first had to think about the kind of _________ or service it wanted to provide before considering if it was the best fit for _________. Finally, the companies had to take their _________ wants and needs into consideration. In making their decisions, both companies had to remember the factors of production: land or natural resources, _________, and capital.

product, the market, customers', labor

Land, labor, and capital also are known as factors of _________ production economics consumerism

production

One of the three main questions of economics addresses who should produce goods and services. market goods and services. receive goods and services. distribute goods and services.

receive goods and services.

If an economy does not answer the three economic questions, resources may _________ run out be recreated become too cheap

run out