Econ Midterm Practice - Ch. 1, 2 , 17 and 30

Front

Which of the following would best represent the role of an entrepreneur? becoming a highly paid businessperson, earning a lot of money as a software engineer for Apple, organizing and taking on the risk of a business that installs sprinkler systems in lawns

Back

organizing and taking on the risk of a business that installs sprinkler systems in lawns

Front

Which of the following could be the opportunity cost of a decision to go to the beach? $2000 for the rental of the beach front house, the sum of all the other possible vacation choices, your next best choice (e.g. a trip hiking in the mountains)

Back

your next best choice (e.g. a trip hiking in the mountains)

Front

What does the production possibilities frontier display?

Back

the potential production of an economy with current resources

Front

As one chooses to watch a movie for the 1st, 2nd, and 3rd time, the marginal benefit of each additional choice will tend to

Back

decrease

Front

Which of the following provides the meaning of the principle of the imperfect transfer of resources? (Hint: This is what causes PPFs to be bowed outward.) Options: Utility decreases with each marginal choice made., Resources are limited, making production more and more difficult., When shifting factors from producing one product to another, the factors become less compatible and more specialized.

Back

When shifting factors from producing one product to another, the factors become less compatible and more specialized.

Front

In the production of a t-shirt, the cotton is grown in India, the design is done in the U.S., and the final manufacturing is completed in Vietnam. This exemplifies the economic concept of

Back

the division of labor

Front

Indonesia has the comparative advantage in the manufacturing of shoes and the U.S. has the comparative advantage in the production of corn. This is due to...

Back

the ability of each nation to produce the specific good at a lower opportunity cost.

Front

Which of the following was NOT a concept that Karl Marx noted when building his theory for the most effective economic system? Due to class conflict, communal ownership of resources (and managed by the government) would most benefit society., Economic security for workers and a system of equal outcome were more important than competition and economic freedom, Private ownership of resources would lead to the most equitable system since capitalists create jobs for households to supply labor and earn an income

Back

Private ownership of resources would lead to the most equitable system since capitalists create jobs for households to supply labor and earn an income

Front

Which of the following is NOT a necessary function of money?
It should provide a measure of the value of a good relative to other goods.
It should stay completely constant in value over the years and not change.
It should be able to be used to make exchanges between buyers and sellers of any good or service.

Back

It should stay completely constant in value over the years and not change.

Front

Which characteristics are the key stumbling block to digitized money being used in all circumstances? Options: divisibility & uniformity, durability & portability, acceptability & trust

Back

acceptability & trust