Econ Units 1 & 2 Retest L

Which of the following best illustrates the use of (physical) capital goods?

• using workers to unload a truck

• using ocean waves to generate electricity

• using a tractor to plow a field

• using marginal utility to measure productivity

• economics

• human capital

• physical capital

• entrepreneurs

When an economy is operating at the production possibility curve/frontier

• all of the answers choices

• all natural resources are utilized

• all factories and equipment are at full production

• all workers are used

Which is true of the government in a command/communist economy?

• The government builds every house in every village.

• The government makes all the important economic decisions.

• The government places much emphasis on the production of consumer goods

• The government encourages workers to innovate

Which of the following in a non-example of the three key economic questions?

• Should military ships be deployed in the South China Sea or the Sea of Japan?

• Should purses be crafted by robots or in factories by machines?

• Should health care be provided according to need or by who can afford it?

• Should more car parts or truck parts be produced by the vehicle industry?

Which of the following is the most accurate statement about what markets allow us to do?

• get the highest prices possible for what we sell

• sell the most goods and services that we possibly can

• exchange the things we have for the things we need

• always get the lowest prices for whatever we buy

A factor that contributes to the incentive problem in a command/communist economy is that —

• workers have no incentive to follow in the careers of their parents.

• planners have to direct all required inputs to each enterprise.

• private ownership of factors of production allow for entrepreneurship.

• workers and entrepreneurs cannot personally gain by improving production.

What is the opportunity cost of moving from point “f” to point “b” on this graph?

• 500 pounds of wheat

• 800 pounds of wheat

• 500 computer chips

• 200 computer chips

If this country is producing 200 computer chips and 500 pounds of wheat, what term would an economist use to describe the economy?

• underutilization

• maximum production

• capitalist

• efficient

What is the opportunity cost of moving from point “b” to point “e” on this graph?

• 500 pounds of wheat

• 300 computer chips

• 500 computer chips

• 700 pounds of wheat