FBLA Economics

______ is a cost that you have already incurred and cannot recover.

• Positive cost

• Lost cost

• Negative cost

• Sunk cost

Being able to do something using fewer resources than other producers require would give you a(n) _____.

• disadvantage

• monopoly

• comparative advantage

• absolute advantage

____ means producing the maximum possible output from available resources.

• Maximization

• Productivity

• Efficiency

• Equilibrium

A shift outward of the production possibilities frontier reflects economic _____.

• growth

• weakness

• stability

• retraction

____ focuses on the performance of the economy as a whole.

• Macroeconomics

• Microeconomics

• Gross national product

• Gross domestic product

Which of the following statements is not valid about gross domestic product?

• it includes production in the United States by foreign firms

• it can be used to compare economies of various countries

• it includes production of U.S. firms in foreign countries

• it measures production during the year by businesses and individuals

Which situation shows the law of diminishing marginal utility at work?

• You are willing to pay the same price for every succeeding slice of pizza you purchase.

• You will only purchase succeeding slices if they cost less.

• Each piece of pizza you purchase gets smaller.

• You are willing to pay more for every succeeding slice of pizza you purchase.

Trade restrictions usually _____.

• benefit domestic consumers

• increase imports

• lower tariffs

• benefit domestic producers

 

____ might cause a shift in the supply curve to the right in the grain business.

• An increase in the cost of harvesting grain

• Discovery of a substitute for grain

• A technological breakthrough to increase yields

• A decrease in the number of farms

The ability of a firm to raise its price without losing sales to competitors is called _____.

• recession

• profit

• market power

• inflation