Economics CBA1

The most fundamental economic problem is

• security.

• the fact the United States buys more goods from foreigners than we sell to foreigners

• health.

• scarcity.

Which is the most accurate definition of the study of economics? Economics is the study of

• the distribution of surplus goods to those in need.

• affluence in a morally bankrupt world

• ways to reduce wants to eliminate the problem of scarcity.

• the choices we make because of scarcity

If 1,000 trucks are being produced, how many TVs could be produced?

• 6000

• 7000

• 9000

• 10000

What is the opportunity cost of moving from Point 3 to Point 5 on the curve?

• 6,000 fewer TVs

• G 6,500 fewer TVs

• 7,000 fewer TVs

• 8,000 fewer TVs

The satisfaction from using one more unit of a good or service is called

• opportunity cost

• opportunity benefit

• marginal cost

• marginal benefit

The opportunity cost of something you decide to get is

• The amount of money you pay to get it

• The highest valued alternative you give up to get it.

• The lowest valued alternative you give up to get it

• All possible alternatives that you give up to get it

On a Saturday morning, you rank your choices for activities in the following order: 1. go the library 2. work out at the gym 3. have breakfast with friends 4. sleep late. Suppose you decide to go to the library. Your opportunity cost is

• working out at the gym, having breakfast with friends, and sleeping late.

• zero because you did not have to pay money to use the library

• working out at the gym.

• not clear because not enough information is given.

In a communist economy, the resources are owned by

• businesses

• government

• individuals or the government

• individuals or businesses

With capitalism, income distribution is determined by market forces

• that reward productivity

• that reward underutilization

• determined by governmental policy

• determined by central planners

According to Karl Marx, all of history is a struggle between

• businesses

• classes

• consumers

• producers