Unit 1 - Pretest

Front

Why do all societies have to make decisions about how resources will be used?

Back

There are not enough resources for those who want them

Front

Which is NOT a scarce resource? Labor, Trees, Time, Candy

Back

Candy

Front

Scarcity is defined as a limited supply of resources and...

Back

unlimited wants for available resources

Front

A company can use its current resources to produce hats and boots as shown in this production possibilities curve. Which of the following represents a movement from inefficiency to efficiency in this PPC? From T to S, From V to T, From S to V, From S to R, From S to U

Back

From T to S

Front

The graph represents a change in the production possibilities of the nation of Xam. Which of the following statements about the economic growth in the PPC is true?

Back

Xam now has more resources or technology available to produce more fast cars, but not fruit smoothies.

Front

What is the opportunity cost of one ton of apples in Country X?

Back

40 bales of wool

Front

If a company decides to invest in employee training instead of buying new equipment, what is the opportunity cost of this decision?

Back

The potential increase in productivity from the new equipment

Front

When a business decides to spend its budget on advertising instead of research and development, what type of opportunity cost is being considered?

Back

Research and development opportunity cost

Front

Point B represents

Back

Businesses

Front

What are the four main parts of the circular flow diagram? Options: Product Market, Stock Market, Factor Market, Fish Market; Product Market, House Market, Factor Market, Good Market; Factor Market, Product Market, Households, Firms; Factor Market, households, Stock Market, super market

Back

Factor Market, Product Market, Households, Firms