Comment assessment

Which statement best expresses the economic problem of scarcity?

• It exists only in poor, underdeveloped countries.

• It exists only in a natural disaster.

• It existed in the past because of inefficient technology.

• It is the basic economic problem facing all societies

A teenager named Carlos started a car-washing business. He bought 1/4 acre of land downtown and constructed 3 washing bays. He hired 4 workers for his business and trained them to shine tires and clean upholstery. What is considered human capital?

• the 3 washing bays

• the 4 workers

• Carlos

• training the workers

• the acre of land downtown

In the figure above, the opportunity cost of producing 50 popcorn instead of 40 popcorn is

• 15 corn on the cob

• 50 popcorn

• 10 corn on the cob

Jamie must decide whether to buy a new truck. He concludes that the marginal costs of buying the truck are greater than the marginal benefits. In Jamie's case, buying the truck would be

• a rational economic decision

• an irrational economic decision

• an opportunity cost

• a productive choice

Country A wishes to increase Economic growth and productivity, Country A's BEST course of action to take is to

• increase production of natural resources

• increase production of consumer goods

• pay entrepreneurs to develop new products

• increase human capital through education

According to the PPC, what point demonstrates the economy has grown and production has increased?

• A

• B

• C

• D

The most common type of resource allocation strategy used in a free market economy.

• First Come, First Serve

• Personal Characteristics

• Price

• Majority rule

• Authority

Which of the following is NOT true regarding voluntary exchange?

• It is made necessary because of societal specialization.

• It is beneficial to the parties involved as long as it is non-fraudulent.

• Its use is limited to predominantly underdeveloped countries.

• It improves efficiency in an economy.

• None of these are true.

The MAIN reason that modern command economies have failed is

• Focus on equity has led to a shortage of luxury goods

• Housing prices were too high

• Government decisions led to shortages and inefficiency

• Government favored capital over consumer goods

Government issued a patent, which would be indicative of a guarantee of

• property rights in a mixed market economy

• equity in a mixed market

• capital improvement

• property rights in a market economy

• none of these