Macroecon pre test

A situation in which there are not enough resources to meet human wants and needs is referred to as

• supply & demand

• normative economics

• scarcity

• positive economics

Which of these is an example of opportunity cost?

• Spending money on a college degree in order to obtain a career

• Working overtime to earn more money instead of going to a concert

• Buying a new oven at a restaurant to replace one that was broken

• An employer paying for employees' health insurance

Which of these are all considered needs, things that are necessary for survival?

• Internet connectivity

• food & water

• shelter

• designer, name-brand clothing

Which of these are all considered wants?

• clean water

• Internet access

• designer, name-brand clothing

• a car or truck

A cost that has already been incurred and cannot be recovered is a(n)

• sunk cost

• opportunity cost

• fixed cost

• uncontrollable cost

A type of market in which the government makes economic decisions on behalf of the people is a

• free enterprise market

• command market

• dictatorship

• socialist market

A command economy is when the government is in control.

• True
• False

The government has little to no role in the production of goods in this type of economy.

• Traditional

• Mixed

• Command

• Market

What are the three economic questions?

• What to produce? How to produce? For whom to produce?
• Who to produce? Why you produce? Like to produce?
• Why to produce? Tell who to produce? Things to produce?

What is an entrepreneur?

• A person who starts a new business.
• A leader of a country.
• A worker in a factory.
• A student in college.