Semester Pre- Assessment (Economics)

Front

The opportunity cost of a new public high school is the

Back

other goods and services that must be given up for the new school.

Front

Which one of the following do economists consider to be an example of capital goods? A. Money in a bank, B. Machines in an auto plant., C. Corporate bonds of an oil company, D. Common stocks in a computer business

Back

Machines in an auto plant.

Front

What is meant by the statement that every economic system faces the problem of scarcity?

Back

There are never enough productive resources to satisfy all human wants.

Front

From an economic point of view, which approach to controlling pollution is most efficient? A. Abolish the use of toxic chemicals in all production. B. Use economic resources to eliminate all pollution. C. Adopt laws and regulations that prohibit economic activities that cause pollution problems. D. Reduce pollution as long as the additional benefits are greater than the additional costs.

Back

Reduce pollution as long as the additional benefits are greater than the additional costs.

Front

The essential difference between a command economy and a market economy is that in a market economy

Back

buyers and sellers determine resource allocation.

Front

Which is a basic economic question that must be answered by all economic systems? A. What will be the share of profits that go to businesses?, B. What will be the amount of the minimum wage for workers?, C. How will goods and services be produced?, D. How will government collect income taxes?

Back

How will goods and services be produced?

Front

Profits are equal to total

Back

revenue minus total cost.

Front

If the government decides to reduce the payroll taxes on the wages and salaries of workers, then there will most likely be

Back

an increase in consumption.

Front

A high school student buys a sweatshirt from a store. The sweatshirt is on sale at a 20 percent discount off the regular price. In this exchange,

Back

the student and the store benefit.

Front

If Nation A adopts public policies that restrict imports from another nation that is a major trading partner, then in Nation A

Back

consumers will pay higher prices for products.