Economics Summative 1.1-1.3

The lack of enough resources to produce everything people want is which central economic problem?

• Allocation

• Production Possibilities

• Productivity

• Scarcity

The rising price of gasoline has motivated the government to release fuel form the US Strategic Petroleum Reserve. Which phrase BEST describes the short-term benefit of this policy?

• increased world-market prices for petroleum

• increased dependence on foreign fuel sources

• increased use of alternative fuels from private sector investment

• increased economic stability from low petroleum prices

Which phrases BEST completes the list above?

• Consumer Demand

• Entrepreneurship

• Regulation

• Urban Growth

Which economic concept is discussed in this excerpt?

• Marginal Benefit

• International Competition

• Monetary Incentives

• Opportunity Cost

Which economic issues is MOST associated with a shortage of capital?

• not enough energy to fuel machines

• not enough workers to produce goods

• not enough money to build new factories

• not enough people who want to start businesses

Regulating business and providing entitlements define the primary economic role of government in which economic system?

• Command Economy

• Mixed Economy

• Pure Capitalist Economy

• Traditional Economy

Which term describes a factor of production?

• inflation

• labor

• scarcity

• tariff

Which fact BEST supports the idea that government see internet access as a critical tool for society?

• In Saudi Arabia citizens have been jailed for posting offensive messages using the internet

• In Ethiopia, it has been difficult to expand internet access due in part to its largely rural population

• In Cuba, some citizens have found ways to get around government restrictions on accessing the internet

• In the United States, the government has a goal of providing affordable and fast internet access to one hundred million homes.

In a market economy, the strongest incentive for entrepreneurship is the opportunity to?

• support projects for the public good

• gain personal prestige and fame

• determine regulatory and tax policies

• earn a profit on investments

Use the diagram above to answer the question

• Business services would increase

• Labor available to businesses would decrease

• Business wages would increase

• Money available to businesses would decrease