EOC Diagnostic

An economic problem that everyone faces is

• labor

• scarcity

• privatization

• abundant resources

The Gov’t tries to reduce unemployment/inflation & promote economic growth.This is an example of:

• Economic Stability

• Economic Security

• Economic Freedom

• Economic Equity

In a command economy, natural resources are usually controlled by

• individuals

• the tribe

• government

• corporations

Which of the following BEST represents capital investment if you own a carpet cleaning company?

• Borrowing money

• Marketing the business

• Purchasing carpet cleaning equipment

• Hiring ten employees

The amount of output produced by a given amount of inputs increases, the MOST LIKELY result is

• business spending on productive resources increases

• economic interdependence rises

• consumer spending on productive resources increases

• overall productivity rises

A point that lies outside of the production possibilities curve

• Illustrates a cost benefit analysis

• Shows legal restrictions set by the government

• Is not attainable with current resources, technology,& labor

• Is the maximum amount of goods/services that can be produced

Which of these is something whose construction MOST LIKELY would be done by the government?

• Golf club

• Highway

• Shopping Mall

• Office building

When economists refer to “demand,” they mean which of the following? How much

• satisfaction buyers receive from a purchase

• consumers will purchase at different prices

• sellers will supply at a particular price

• people want the product if it is free

The phrase ‘the quantity demanded of a product varies inversely with its price’ is definition

• of Laissez-faire

• of The law of demand

• of The invisible hand

• of The law of competition

Market structure that has all conditions of perfect competition except identical products is

• monopoly

• oligopoly

• pure competition

• monopolistic competition