Economics test 1/2

Economics is

• anything having to do with money

• the science of how and why people, businesses, and governments make the choices they do

• how people, businesses, and governments ought to make financial choices

• the systems man creates in order to produce, buy, and sell products

The chief advantage of the line graph over the schedule is

• It contains more data

• It better illustrates results

• It is more scientific

• It is less complicated

Which of the following examples does not fall into the sphere of economics?

• buying something on Amazon

• the stock market reaching a new record high

• choosing whether to go to college in the fall or work

• people watching at the mall

On a PPC graph, any point on the graphed line represents

• production variables

• minimum costs

• production efficiency

• wasted resources

Which two basic economic principles create the need for choices?

• subjective value and opportunity

• unlimited wants and limited resources

• utility and opportunity

• scarcity and contentment

What are the two basic elements of the circular flow model?

• business firms and stock markets

• business firms and the government

• banks and households

• business firms and households

What biblical concept refers to a person's responsibility to make proper choices with his resources?

• stewardship

• humility

• contentment

• unselfishness

Which of the following would an economist not consider an example of land?

• river

• cows

• delivery vehicles

• corn

After twelve years of faithful service, your family's car finally collapses beyond hope of repair and must be taken to the junkyard. Which economic term does this vehicle now best illustrate?

• nuisance good

• economic good

• scarce good

• free good

Which of the following is not an example of capital?

• employees of the company

• life insurance policy on the owner of the company

• machines used in production

• cash set aside to purchase new equipment