SSEF1 and SSEF2 Benchmark B

A rational decision maker:

• ignores marginal changes and focuses instead on "the big picture".

• ignores the likely effects of government policies when he or she makes choices.

• takes an action only if the marginal benefit of that action exceeds the marginal cost of that action.

• takes an action only if the combined benefits of that action and previous actions exceed the combined costs of that action and previous actions.

NXTX Incorporated currently has 10 workers. It would like to expand and hire more workers. Each additional worker will cost the company $100 per day. According to the information in the table, how many workers in total should NXTX Incorporated employ to maximize its profits?

• 11

• 12

• 13

• 14

MagnaFlare is a corporation that makes road flares. One of the primary components of a MagnaFlare is ground magnesium. How would the magnesium ore, from which ground magnesium is made, be classified as a factor of production?

• Capital
• Land
• Entrepreneurship
• It is not a factor of production, it is a product.

Paul wants to buy a classic sports car. Unfortunately, only a limited amount of dealers and collectors have the model car he wants. As a result, Paul will have to pay a high price, if he can even get the car at all. Paul is experiencing

• depreciation in the market
• severe inflation
• an embargo on cars
• scarcity

Following a massive hurricane that hits Georgia's northern coast, residents have not running water or electricity. As a result, citizens buy up all of the flashlights and bottled water in the area faster than producers can supply them. What problem do people on the Georgia coast n ow face, regarding flashlights and bottled water? 

• Excessive rgulation
• Scaracity
• rationing
• incomplete tradeoffs

The act of giving up one thing in value to gain another thing of value is called an

• Opportunity cost
• Profit
• Marginal cost
• Tradeoff

The study of how individuals, firms (businesses), and nations best allocate their limited resources is called

• Economics
• Entrepreneurship
• Scarcity calculation
• Government regulation

When wants exceed resources is known as

• Rational Decision
• Entrepreneurship
• Scarcity
• Productive resources

Trees, minerals, and the real estate on which a company builds its main manufacturing center are all

• Capital goods
• Capital investments
• Land
• Entrepreneurship

Profit, Job creating, innovation and improving society motivate people....

• To go to work
• Stay at home and not go to work
• Get an Education
• Become an Entrepreneurs