Fundamentals Review

Front

What is the opportunity cost of choosing to spend an evening studying for an exam instead of going out with friends?

Back

The enjoyment and social interaction missed with friends

Front

Which of the following scenarios best illustrates a rational decision? Buying a car without comparing prices, Choosing a job with lower pay but better work-life balance, Investing in a company without researching its financial health, Spending all savings on a vacation

Back

Choosing a job with lower pay but better work-life balance

Front

Evaluate how a command economy prioritizes economic goals compared to a market economy.

Back

Command economies prioritize security and equity over freedom.

Front

Which of the following is a role of government in a mixed economy? Providing all goods and services, Redistributing income through taxation, Eliminating all market competition, Setting prices for all products

Back

Redistributing income through taxation

Front

How does investing in education contribute to a higher standard of living?

Back

It leads to higher productivity and income

Front

Explain how specialization benefits businesses in a global economy.

Back

It allows businesses to produce goods at a lower cost.

Front

What is the primary benefit of voluntary, non-fraudulent trade for individuals?

Back

It increases the variety of goods and services available

Front

Compare the role of government in providing public goods in a market economy versus a command economy.

Back

In a market economy, public goods are often underprovided without government intervention.

Front

Which of the following is an example of a market failure that may require government intervention? A company producing high-quality products, A monopoly setting excessively high prices, A competitive market with many sellers, A decrease in consumer demand

Back

A monopoly setting excessively high prices

Front

How can investments in healthcare lead to economic growth?

Back

By increasing the workforce's productivity and longevity