6 - Quiz - Economics - Opportunity Cost

 When companies split ownership of their companies into smaller “shares” that they sell to the public the shares are also called...

• sales

• stock

• money

• options

What is Adam Smith saying in the following quote:  "He generally indeed, he being an economic actor, neither intends to promote the public interest, nor knows how much he is promoting it. By directing that industry, so that the industry in control of that individual actor in such a manner, as its produce may be of the greatest value, he intends only his own gain."

• Movie actors are not interested in the public

• Business people are motivated by profit only

• Business people want to make the world a better place

• More money can be made with products that help people

What does Adam Smith mean by "invisible hand" in the following quote: "'He intends only his own gain'. And he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention."

• the person is invisible

• only his gains are visible

• the economy is a self organizing system controlled by the law of supply and demand

• the government controls the economy of the society

"Congress reacted to the massive economic turmoil brought on by the pandemic with a series of large-scale interventions. Those helped boost wealth for all households. Lower-income and middle-income households dipped into their savings sooner than higher-income ones to pay their bills. The difference in financial emergencies and needs contributed to a renewed increase in wealth inequality during the current crisis." - Forbes Magazine 12/22/2021

According to Forbes the Pandemic caused income inequality to...

• get less

• stay the same

• get worse

• disappear

The four factors of production are:

• Land, Labor, Capital, Entrepreneurship

• Land, Labor, Capital, Consumerism

• Land, Labor, Authoritarianism, Entrepreneurship

• Land, Government, Capital, Ownership

When Michael Jordan decided to market his Air Jordan sneakers in 2015 which "Factor of Production" best describes Jordan's role here?

• the land

• the labor

• the capital

• the entrepreneur

The entire field of economics is based on the idea of...

• money

• scarcity

• gold

• the stock market

Scarcity means....

• a scary city

• overproduction is common

• not enough of something to go around

• consumers have too many choices

"Opportunity Cost" is

• the result of poor choices

• expensive

• the cost of college

• What you give up whenever you get something

If there is a large demand for a scarce resource then the price of the resource is most likely...

• Low

• the same as a free resource

• High

• none of these