Econ 1.09 Review

Costa Rica is a top exporter of coffee. The highest quality coffee is sold abroad, and the lower quality coffee is consumed by native Costa Ricans.

Which of the following statements best describes the economic questions this paragraph addresses?

• For whom to produce? and What to produce?

• For whom to produce? and When to produce?

• How to produce? and For whom to produce?

• What to produce? and How to produce?

Which of the following best addresses the economic question How to produce?

• Peachtree designs a new smartphone for visually impaired users.

• Head Tome sells online targeted ads to generate revenue.

• InFocus conducts focus groups to determine its target market.

• Zara uses manufacturers in Turkey to make high-fashion clothing.

Which of the following best addresses the economic question For whom to produce?

• Compass Learning Group contracts a team from India to write a course.

• Head Tome runs a social networking site with incorporated advertising.

• Lady Zigzag's agent makes concert tickets available on a new smartphone app.

• InFocus conducts focus groups to determine its target market.

Jen is starting a nonprofit store. She plans to sell handmade African scarves and jewelry. Which economic question(s) would Jen still need to answer?

• For whom to produce?

• How to produce?

• What to produce? and For whom to produce?

• What to produce? and How to produce?

Magola makes baked goods for a living. She and a friend buy the ingredients, follow Magola's recipes, and sell cakes and cookies to neighbors. Cookies and cakes is the answer to which economic question(s)?

• How to produce?

• How to produce? and For whom to produce?

• What to produce?

• What to produce? and How to produce?

A doctor at Boston University partnered with a professor at Northeastern University to create a virtual support program for patients recently discharged from the hospital. How would they answer the economic questions For whom to produce? and What to produce?

• A virtual support program and patient instructions

• Hospitals and patient instructions

• Support program and hospitals

• Patients and a virtual support program

Economics is defined as a study of the

• properties of money

• ways people obtain their wants with limited resources

• ways businesses and government operates

• best ways to increase the profits of a company

Which of the following addresses all three of the basic economic questions?

• You start your own lunch delivery service serving area businesses and featuring all organic meals baked in your home.

• You start a wedding planning business and advertise your services online.

• You decide to work from home using your existing office as your headquarters.

• You launch a nanny-referral service focusing on young, working families in your community.

You choose to complete your homework rather than watch television so that you can earn a good grade. You made the choice with the lowest

• opportunity cost

• demand

• scarcity

• benefit

Lois promised to take her nephew to the zoo on Tuesday afternoon. On Tuesday, her boss hands her a new project, due by the end of the day. Which of these is an opportunity cost of Lois using Tuesday to work on her project?

• She and her nephew enjoy an afternoon at the zoo.

• Her project will be late.

• She could lose her job.

• She will save the cost of two zoo tickets.