Economics Semester Test

While the wants and needs of consumers are unlimited, productive resources are limited, forcing consumers and producers to make choices. This concept is known as

• Borrowing

• Surplus

• Scarcity

• budgeting

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DOK 1

Scarcity

George decides to go back to school to earn an advanced degree. Which productive resource is most directly affected by George’s decision?

• Entrepreneurship

• Human capital

• Natural resources

• Physical capital

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DOK 2

Factors of Production

Imagine you have decided to buy a movie ticket for $15. Which of the following best describes the opportunity cost of your decision?

• The $5 you pay for popcorn

• The time spent watching previews before the movie

• The money and time you spend on the movie

• The time you spent deciding which movie you should watch

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DOK 2

Opportunity Costs/Trade Off

When one choice is made over another, the next best use of time, money, and/or resources is called a/an

• rational decision

• opportunity cost

• favorable outcome

• efficient outcome

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DOK 1

Opportunity Costs/Trade Off

Which of the following best describes marginal cost?

• The additional expenses or effort you expend when performing one more unit of action

• The additional benefit you receive from performing one more unit of action

• The amount you pay for a good or service

• When consumers wants and needs exceed scarce productive resources

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DOK 1

Marginal Cost/Benefit

Freedom of choice and competition are most commonly associated with which type of economic system?

• Command

• Market

• Traditional

• Communist

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DOK 2

Economic Systems

Which of the following lists the three basic economic questions?

• What to produce, How to produce, Why to produce

• When to produce, For whom to produce, How to produce

• Where to produce, For whom to produce What to produce

• What to Produce, How to produce, For whom to produce

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DOK 1

Economic Systems

A mixed economy allocates resources through

• demand, but not supply.

• by bartering.

• government directives only.

• supply, demand, and government intervention.

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DOK 1

Economic Systems

Congress moved to pass a new antitrust law. This new law is an example of which role of government?

• Discouraging negative externalities

• Promoting competition in the market

• Protecting the environment

• Preventing labor unions

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DOK 1

Government Regulations

A negative externality results in a ________ for a different person other than the original decision maker, while a positive externality results in a ________ for a different person other than the original decision maker.

• loss, cost

• cost, benefit

• gain, benefit

• benefit, cost

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DOK 1

Externalities