SSEF 1 Review

Football fans and sport commentators frequently argue over the strategies professional football teams use in drafting players. Some teams are looking for a player for a specific position, and when their turn comes, they draft the best available player at that position. Other teams simply draft the best player available regardless of position. These teams argue that by selecting the best possible player regardless of position, they can trade the player they draft now for a better player than they could draft for the desired position later.

What is the MOST scarce resource that professional teams have in the drafting process?

• money

• the trades

• draft positions

• the best players

Which factors result in scarcity when both are present?

• unlimited wants and limited resources

• profit motive and entrepreneurship

• specialization and competition

• innovation and monopoly

What is typically true of scarce resources in a market economy? They are

• produced by the public sector rather than the private sector.

• consumed at a slower rate than the rate at which they are produced.

• allocated by price, with scarce resources often carrying a relatively high price.

• allocated by authority, with scarce resources often controlled by those in power.

Aiden is thinking of a career as a landscaper. He decides to take some classes offered by the local garden club so he can learn more about plants and flowers. What will be the opportunity cost associated with taking the classes?

• the number of hours Aiden will spend in class

• what Aiden gives up in order to attend class

• the dollar value of the classes

• the income Aiden will earn

Which of these is an example of a natural resource that trucking companies require?

• a large garage

• a spare engine

• a trained driver

• a petroleum supply

Which of the following BEST illustrates the economic concept of scarcity?

• Marie bought some stock for $1,000 last year; today she sold the stock for $1,250.

• Dan wants a bag of chips and a cola. Each costs one dollar. Dan has just $1.50.

• In the winter, the hardware store charges more for snow shovels than it charges in the summer.

• Jorge's boss tells him that if he gets the stockroom cleaned up by closing time, he can have the day off tomorrow.

Desmond works as a cashier at the FoodCo chain of grocery stores. He is good at his job and his managers take notice. The store managers offer to help him improve his human capital by paying for management courses so that he can become a manager at one of the FoodCo locations.

By paying for Desmond's management courses, FoodCo hopes to improve the value of which productive resource?

• capital

• entrepreneurship

• labor

• natural resource

Roberto decides to take a first-aid class at the local Red Cross. The cost of the class is $20. He will pay an additional $5 for transportation to and from the class. In order to attend the class, Roberto will lose three hours at his job, where he earns $8 per hour. What is Roberto's opportunity cost for taking the first-aid class?

• $20

• $24

• $25

• $49

Profits, job creation, innovation, and improving society are often viewed as key elements that motivate which group of people?

• Monopolies

• Entrepreneurs

• Poor People

• Day Traders

Danielle recently lost her job at the Panther Motors manufacturing plant. The plant was forced to lay off much of its staff due to poor sales of its new Panther XL truck. Danielle believes that the public wants smaller, more gas-efficient vehicles and that management failed to recognize market trends. After securing a small-business loan, Danielle opens a small boutique car company, which designs and manufactures the Lynx, a small gas-electric hybrid sport coupe. Within three years, Danielle expands her company to keep up with demand.

Which productive resource was MOST important to the success of the Lynx and the failure of the Panther XL?

• capital

• entrepreneurship

• labor

• land