POB Unit 5 Review

A farmer has 1,000 acres. He decides to plant apple trees on 800 acres and raise cows on the remaining 200 acres. If he wanted to raise more cows, he would have to reduce the amount of land allotted to growing apples. This is an example of:

• distribution

• opportunity cost

• efficiency

• utility

The usefulness of a product to consumers is referred to as product:

• scarcity

• utility

• allocation

• consumption

When prices increase, producers usually:

• increase demand

• decrease supply

• increase supply

• decrease profits

Which is an example of an economic service?

• car stereo

• tennis shoes

• baseball glove

• concert ticket

Which change provides the most time utility for a consumer?

• staying open for business on the weekend

• arriving at a product trade show early

• shopping for a product in the morning

• asking for early delivery of a product

For a business, income remaining after payment of expenses is:

• loss

• capital

• profit

• debt

In business terms, what is profit?

• a risky venture

• a good investment

• a holiday bonus

• a monetary reward

Which represents a natural risk for the owner of a delivery service?

• snowstorm

• accident

• rising prices

• government intervention

A major characteristic of a market economy is which type of ownership of property?

• monopolistic

• limited

• government

• private

Countries whose governments provide citizens with free medical care, education, and other benefits often are referred to as which type of state?

• military

• capitalist

• consumer

• welfare