Unit 1B Economics Test Review

Study the graph below and use it to answer this question. Which point on the graph represents a production level that a entity is unable to reach?

• Point D

• Point E

• Point A

• Point C

Study the graph below and use it to answer the following question. Which point on the graph represents an inefficient use of resources?

• Point E

• Point A

• Point D

• Point C

Study the information below and use it to answer the question. According to the production possibilities curve information, the opportunity costs of moving from Point A to Point B could be expressed as...

• 25 TVs

• 70 Radios

• 80 TVs

• 15 Radios

All the points on a production possibilities curve (frontier) are...

• inefficient

• irrelevant to production

• impossible to make

• efficient

Production Possibilities Frontier (curve) are diagrams that represent various combinations of _______________ that an economy can produce when all resources are fully employed.

• goods and services

• incentives and dreams

• goals and desires

• supplies and equity

Use the diagram to answer this question. Which of the following choices best describes what this production possibilities frontier (curve) is depicting?

• alternative possibilities

• opportunity cost

• economic growth

• cost of idle resources

The primary goal of any entrepreneurs is to make...?

• rent

• profits

• wages

• interest payments

In a command economy, who owns the means of production?

• the government

• family groups, or clans

• the Catholic Church

• wealthy entrepreneurs

In a market economy, the use of goods and services is determined by

• advertisers' decisions

• individual desires

• government regulations

• people's incomes

What advantages does one have being in a market economy vs a command economy?

• more efficiency & freedom

• prices and wage control

• limits on profits and more public goods

• more equity and security