Economics Exam (Midterm)

Economics is the study of.....

• Money

• Scarcity

• Finances

• Economic Systems

Scarcity =

(a)  

The process of giving up one thing for another is a (a)  

The next best thing given up during a decision is an (a)  

Which point on the graph is underutilization/Inefficient?

• A

• B

• C

• E

What is the opportunity cost of moving from point B to Point A?

• 100 Food

• 50 Food

• 100 Clothes

• 150 Clothes

United States is able to 30 cars in 1 hour and 12 trucks in 1 hour.

England is able to produce 25 cars in 1 hour and 8 trucks in 1 hour.

Which country has the absolute advantage in making cars?

• United States

• England

• Neither

• Both

United States is able to 30 cars in 1 hour and 12 trucks in 1 hour.

England is able to produce 25 cars in 1 hour and 8 trucks in 1 hour.

Which country has the comparative advantage in making cars?

(Remember- Quick and Dirty)

• United States

• England

• Neither

• Both

Miles is starting his own business and wants to be a pressure washer. Which of the following would be considered capital?

• The Pressure Washer and Nozzles needed to complete his work

• A business credit card

• Miles uses extra space in his apartment as his office

• Miles hires part time help for $10 a hour.

If you went to buy a car and your payment was $388 a month, what would be the direct cost of buying that car?

• $388 a month car payment

• Hidden Fees

• Taxes