ECON CFA #1 (needs work)

ECON CFA #1

Multiple Choice

According to economic theory, what is the main effect that the scarcity of resources has on human behavior?

• Different groups learn to cooperate with each other

• government must step in to control distribution

• banks are created so that people can save money

• people are forced to make choices

Multiple Choice

When a person makes a choice, which economic term best describes the value of the alternartive not chosen?

• disposable income

• medium of exchange

• balance of payments

• opportunity cost

Multiple Choice

In economics, which term best describes the costs associated with producing one additional unit of something?

• opportunity cost

• fixed cost

• transaction costs

• marginal costs

Multiple Choice

The Production Possabilities Frontier curve is one way to illustrate which of the following?

• The inverse relationship of price and demand

• how eficiently an economy allocates its resources

• the equilibrium wage rate in the labor market

• changes in the consumer price index from year to year

Multiple Choice

You bought two new CD's with the last $30 in your checking account, and your next payday is on Monday, what is the opportunity cost of these CD's?

• The difference between the cost to produce the CD's and the price you paid for them

• $40

• dinner and a movie with your friends this Saturday night

• knowing you are the first of your frinds to have these CD's

Multiple Choice

Which of the following is an example of scarcity rather than a shortage?

• a popular toy sold out during the busy holiday season

• you have spent your last penny and payday is a week away

• a person wants an endless supply of everything but cannot have it

• Gasoline was rationed in America during World War 2

Multiple Choice

If a factory decides to switch from using human labor to automation, which one of the "3 basic Economic" questions is it answering?

• What are we producing?

• How are we producing it?

• why are we producing it?

• for whom are we producing it?

Multiple Choice

The resources used to make all goods and services are the?

• production possabilities

• factors of production

• production trade-offs

• firms/private companies

Multiple Choice

Label box #9

• goods and services market

• household or consumer

• factors market/raw materials

• firms/private companies

Multiple Choice

Label box #10

• goods and services market

• household or consumer

• factors market/raw materials

• firms/private companies

Multiple Choice

Label box #11

• goods and services market

• household or consumer

• factors market/raw materials

• firms/private companies

Multiple Choice

Label box #12

• goods and services market

• household or consumer

• factors market/raw materials

• firms/private companies