Economic Concepts CE11

Trees are an example of what type of resource?

• Natural
• Capital
• Entrepreneurship
• Human

What does the interaction between supply and demand decide?

• Price of goods and services
• Mixed economies
• Consumer preferences
• Free markets

Chippy Treats is a store that sells cookies.  Last month, Bizzy Sweets, another cookie store, opened in the same shopping center.
How does the opening of the new store most likely affect the buyers of cookies?

• Fewer people will want to buy cookies.
• The price of cookies will increase.
• Customer service at both stores will improve.
• The quality of the ingredients will decrease.

What is consumption?

• That which determines price
• That which is given up when a choice is made
• The using of goods and services
• Making of goods and services

What do you call the process of combining resources to produce goods and services?

• Consumption
• Production
• Demand
• Distribution

The workers in a factory are considered what type of resource?

• Capital
• Entrepreneurship
• Human
• Natural

Tamara won the lottery and has decided to invest the money in the stock market instead of building a new home at the beach.  What is her opportunity cost?

• The cost of the lottery ticket
• The cost of the new home
• The interest she earns on the money
• The time she could spend surfing

Olivia normally works after school on Mondays and Wednesdays.  Which is her opportunity cost if she adds Tuesday and Thursday afternoons to her work schedule?

• The time she could spend studying
• The additional hours she spends at the job
• The new clothes she could buy
• The extra money she could earn

Which statement describes how a command economic system determines what will be produced?

• Sporty Motors will produce a set number of automobiles each month that can be traded for tractor parts.
• Sporty Motors will produce more of the most popular model purchased in the past year.
• The government will allow Sporty Motors to keep all profits earned each month to promote economic growth.
• The leaders of the government will determine how many automobiles Sporty Motors produces each month.

What type of economic system does the United States have?

• Traditional
• Free Market
• Command
• Mixed