Economics Quiz #2

What is the fundamental problem of every society?

• labor costs

• scarcity

• economic interdependence

• market fluctuation

Based on the table, if the country is currently producing at point B and decides to produce at point C, the opportunity cost for the additional pair of shoes is ____ pizzas.   

• 23

• 26

• 3

• 2

The table shows the production possibilities for a country. Based on the table, which of the following production combinations is a possibility?

• 28 pizzas and 5 pairs of shoes

• 3 pairs of shoes and 23 pizzas

• 2 pairs of shoes and 20 pizzas

• 4 pairs of shoes and 15 pizzas

What is the production possibilities curve?

• a graph that shows how much an economy can produce between 2 goods

• how much money something costs

• land, labor, capital, and entrepreneurship

• the opportunity one has to give up in order to gain something else

Land, Labor, Capital, and Entrepreneurship 

• Diversification

• Deductions

• Portfolio

• Factors of Production

Efficiency is producing the maximum possible output from available resources

• True

• False

The diagram shows the production possibilities curve for Country Y. Which of the following statements is true?

• If Country Y is producing at point C, it is using all its resources efficiently

• The opportunity cost of producing more machines is constant

• Country Y cannot produce at point E

• The most efficient point of production is point D

Sally works in a private company that has to follow government rules for public safety. What is the economic system of her government?

• Free market

• Command

• Mixed

• Traditional

Which of the following are the names of the types of economic systems? (Bubble all that apply)

• Traditional

• Universal

• Command

• Market

Which economic system is based on customs and beliefs, people will do the same work as their parents, and the exchange of goods is through bartering (no money)?

• Traditional

• Command

• Market

• Mixed