Economics Final Exam - Fall 2021

Manufactured goods needed to produce other goods and services are called

• nondurable goods

• Gross Domestic Product (GDP)

• capital goods

• consumer goods

To arrive at an economic decision, a decision-making grid may be used to evaluate

• productivity

• alternative choices of action

• only durable goods

• only capital goods

Study the graph. Suppose this nation starts with producing all military goods. It then decides to produce a mix of civilian and military goods represented by point B. What represents the cost in military goods given up?

• the vertical distance between point X and point Y

• the horizontal distance between point Y and point Z

• the horizontal distance between point Z and point E

• the vertical distance from point A to point X

In this production possibilities frontier, what could cause production to move from point "A" to point "E"?

• factories that are available but idle

• the availability of additional resources

• increased productivity

• economic growth

Which of the following choices best describes what this production possibilities frontier is depicting?

• alternative possibilities

• cost of idle resources

• opportunity cost

• economic growth

What factor of production do these images illustrate?

• Labor

• Capital

• Land

• Entrepreneurship

Unlike a general partnership, in a limited partnership

• all partners share equal financial responsibility for the firm's decisions

• the inactive partner has limited liability for the business's debts

• the partners must pay special business taxes

• the business does not end with the death of a partner

A merger of corporations involved in different steps of manufacturing or marketing is known as a

• Multinational merger

• Vertical merger

• Horizontal merger

• Conglomerate

An advantage of a corporation is that

• owners pay fewer taxes than owners of other forms of business

• the business is subject to little government regulation

• owners have limited liability for debt

• owners have direct and immediate control over daily management of the business

What form of business organization does this organizational chart depict?

• partnership

• corporation

• sole proprietorship

• joint venture