Unit 0 AP Macro Test Review

Which of these terms is the BEST synonym for the word "entrepreneur"? SSEF1c DOK1

• Business owner

• Homeowner

• Employee

• Student

Land, labor, capital, and entrepreneurship are the: SSEF1b DOK1

• Basis of employment

• Results of production

• Factors of production

• Results of supply and demand

As one of the factors of production/productive resources, capital can be defined as: SSEF1b DOK

• the goods and services a business produces.

• the supply of labor needed to produce goods.

• the people that purchase goods and services.

• the equipment and factories needed to produce goods.

Which of these BEST represents capital investment for a company? SSEF1b DOK1

• advertising

• renting space

• buying new equipment

• hiring new employees

Mr. Stevens owns a building in downtown Bentonville. He has considered opening a sporting goods store in the building but has also been approached by someone who would like to rent the space to open a gym. If Mr. Stevens decides to open his sporting goods store, what is the opportunity cost of this decision? SSEF1b DOK1

• the opportunity to rent it to another tenant

• the property tax he would pay on the building

• the opportunity he has to run his own business

• the profits he would make from his sporting goods store

· ditch digger · computer programmer · international financier

ALL of these are examples of: SSEF1b DOK1

• skilled labor.

• human resources.

• unskilled labor.

• capital resources

Brian wants to buy a soda and a box of popcorn at the movies. However, he only has enough money for one or the other. If Brian buys the soda, which of the following is his "opportunity cost"?

• the price of the soda
• the price of the popcorn
• the satisfaction of eating the popcorn
• his thirst

How does specialization encourage international trade? 

• When countries specialize in one product, they can master it and sell it to other nations. 
• When countries make many different products, they do not have to trade. 
• Specialization uses resources from many countries. 
• Specialization does not encourage international trade.

Which is the best example of specialization?

• A surf shop lowers the price on swimsuits.
• A dry cleaner spends extra time on grease spots.
• An assistant in a tailoring shop only replaces zippers.
• An online clothing outlet offers customized monograms.

In a voluntary exchange, why do people give something up?

• to increase their self-sufficiency
• to get something they want more
• to allocate scarce resources fairly
• to allocate scarce resources fairly