Econ 1A Test Fundamentals 2019

Economics is how _____ are managed in the production, exchange, and use of goods and services.

• revenue
• republic
• resources
• recurring

Juan realizes that if he studies an extra hour for his test, he will score five points higher. For each extra hour spent studying, he is getting one hour less sleep. When deciding whether to spend an additional hour studying or sleeping, Juan is engaged in what economic activity?

• bartering

• marginal analysis

• market transactions

• trade negotiations

In college, people can major in a wide variety of fields including medicine, journalism, business, and design among others. This is an example of the concept of

• scarcity

• specialization

• elastic demand

• progressive taxation

Economics growth is often tied to investment in machinery, new technology, and education of the population. This is because

• the only way to measure economics growth is to observe changes in these factors

• investment in these items are the sole determinant of output

• all of these items improve capital

• these items lead to a greater productivity of inputs

When two people engage in trade, both sides will benefit if the trade meets which two requirements?

• voluntary and non-fraudulent

• non-voluntary and fraudulent

• free and international

• rational and marginal

A __________________ takes risk by responding to consumer sovereignty and combining resources

• Command Economy

• Market Economy

• Entrepreneur

• "Productive" Employee

What is the "land" resource when making a pizza?

• The Delivery Boy

• The Oven

• The Pizza Shop Owner

• The Dough/ Cheese/ Sauce

By designating positions on a football team (QB, RB, O-Line, etc.) a coach is taking advantage of...

• Entrepreneurship

• Incentive

• Divisions of Labor

• Productivity

Freddie Freeman paid $1,000 to the fan that caught his first career home run ball. This is an example of:

• Incentive

• Marginal Cost

• An Externality

• Voluntary Exchange

The opportunity cost of increasing production from 7 to 9 trucks is

• 1 boat
• 2 boats
• 2 trucks
• 3 boats