Economics Unit 1

Front

Which of the following would result in a change in the production possibilities frontier in the mythical country Alpha? Options: an influx of immigrants from other countries, the discovery of an abundant natural resource, a long drought, all of the above

Back

all of the above

Front

Scarcity is a basic economic problem because:

Back

resources are limited

Front

Which of the statements best describes the communist ideal? Options: society in which the working class is motivated by incentives to produce goods, classless society in which workers are motivated by financial incentives, classless society in which everyone works for the common good, society in which a small ruling class administers resources for the common good

Back

classless society in which everyone works for the common good

Front

_______ protect consumers against harm from products on the market

Back

Government regulations

Front

Inflation causes people to _______ .

Back

work more to pay for basic necessities

Front

Which of the following helps determine something’s value? Options: utility, scarcity, beauty, both utility & scarcity

Back

both utility & scarcity

Front

Which of the following statements best describes the purpose of the production possibilities curve? It shows which products are most profitable. It predicts the future production of a nation. It identifies trends in production. It identifies all possible combinations of goods and services an economy can produce.

Back

It identifies all possible combinations of goods and services an economy can produce.

Front

The efficient use of scarce resources leads to an increase in:

Back

Productivity

Front

When deciding how to use resources, you need to evaluate the costs and benefits of each choice to decide which meets your criteria. These are called:

Back

Trade-offs

Front

Which of the following is a disadvantage of a market economy? It does not allocate resources as efficiently as other types of economies. It restricts personal freedom. It sustains a high degree of uncertainty. It discourages creativity & new ideas for doing things.

Back

It sustains a high degree of uncertainty