Economics: Work and Prosperity Test 3

What type of good is a truck used by a florist to deliver flowers?

• supplier

• productive

• capital

• consumer

 If Gordon McConnell's accounting business had expenses equaling $90,000 and revenues totaling $115,000 last year, but he could have had a salary of $80,000 working for someone else, what was his opportunity cost?

• $125,000

• $105,000

• $55,000

• $45,000

 What type of good does not last more than three years?

• durable good

• normal good

• nondurable good

• inferior good

What type of economic system is controlled by a centralized authority?

• traditional

• mixed

• free enterprise

• command

Besides limited government and freedom of enterprise and competition, to what does the free market economy owe its proficiency?

• property rights

• natural resources

•  productivity

• division of labor

What is the retail clothing industry in a large city an example of?

• oligopoly

• monopolistic competition

• monopoly

• perfect competition

Which group favored a "natural economy"?

• mercantilists

• physiocrats

• protectionists

• imperialists

 What states that when the price of a good falls, consumers tend to buy more of that good?

• demand effect

• income effect

• substitute effect

• elasticity effect

What type of good is directly related to a consumer's income?

•  nondurable good

• normal good

• durable good

• inferior good

What type of economic system is based upon custom, heredity, and caste?

• traditional

• mixed

• free enterprise

• command