Edgenuity Geo and Econ

Jim owns a convenience store. He decides to invest in a hot food buffet. Between building the buffet, hiring a part-time cook, and advertising the food, he spends more than $30,000 over one year. What is the opportunity cost of this decision?

• the wages paid to keep a new cook interested in the job for a whole year

• the time spent researching the local demand for hot food before paying for

• the one-time expenses needed to run the buffet, such as new cooking and safety equipment

• the profits lost by not investing the money and time in another service, such as a new gas pump

Which is a function of entrepreneurs in a market economy?

• finding investors

• protecting resources

• ensuring fair competition

• deciding consumption levels

During a period of high inflation, what government actions can preserve the value of money? Select two options.

• forcing producers to sell at a certain price

• selling gold for use as an alternate currency

• restricting the money supply by adjusting interest rates

• providing increased benefits to people harmed by inflation

Which factor is used to calculate the GDP?

• net imports

• currency inflation

• industrial production

• business investment

Madagascar’s economy is focused on vanilla, while Saudi Arabia’s economy is centered around oil. Why have these countries chosen to specialize in these particular products?

• They have large amounts of these resources available

• These products are very difficult to produce.

• No other countries in the world trade these products.

• They need to specialize in these products so their citizens have enough of them.

In international trade, an exchange rate is __________.

• a way to record a nation’s imports and exports

• an agreement between nations to reduce trade barriers

• a chart for keeping track of prices on a stock exchange

• a number that is used to show the value of one currency compared to another

Encouraging free trade between countries and helping countries negotiate trade conflicts are the two most important jobs of the __________.

• European Union

• NAFTA

• United Nations

• World Trade Organization

In economic language, a shortage is best defined as __________.

• a situation in which the demand for a good or service is greater than the amount supplied in a market

• an ongoing condition of limited resources to meet unlimited needs and wants

• too many businesses selling a product and not enough people who want to buy it

• a situation in which people need to be very careful with what they have because they might not be able to afford more

Which of the following BEST describes the main difference between scarcity and a shortage?

• While a shortage is a temporary market condition, scarcity is an ongoing condition in the world.

• While scarcity is a temporary market condition, a shortage is an ongoing condition in the world.

• Scarcity is found throughout the world, but shortages only occur in wealthy countries.

• Shortages occur everywhere, but scarcity happens only in countries with very high poverty levels.

Which of the following is NOT one of the three important decisions about how to use limited resources?

• What should be produced?

• How should it be produced?

• Who will use what is produced?

• Why is it being produced?