Free Enterprise Capitalism and Economic Growth Quiz

Consider a country that has recently seen a surge in its technology sector, leading to more software companies and digital services. This scenario is most closely associated with an increase in

• goods and services.

• economic interdependence.

• opportunity cost.

• capital and labor.

Imagine a factory producing shoes. The number of shoes produced in an hour using a specific amount of leather and labor is referred to as

• productivity.

• human capital.

• efficiency.

• investment risk.

In a car manufacturing plant, division of labor is practiced because

• the company does not want workers to talk to one another.

• it increases efficiency by ensuring that all workers become good at every task.

• it increases efficiency by ensuring that workers become good at specific tasks, such as painting or engine assembly.

• it prevents specialization in tasks like welding or quality control.

Which of the following would result in a change in the production possibilities frontier in the country Alpha?

• an influx of immigrants from other countries

• the discovery of an abundant natural resource

• a long drought

• all of the above

In the country of Alpha, a local car manufacturer has developed a new robotic assembly line technology that doubles the efficiency of their car production. How is this likely to affect the production possibilities frontier?

• It would not change the frontier.

• It would make the frontier smaller.

• It would expand the frontier.

• It would change the shape of the frontier.

Dave gets a job at a grocery store, which pays him an hourly wage. Dave is participating in

• entrepreneurship.

• human capital.

• the product market.

• the factor market.

Imagine a small island nation that can produce only two goods: seafood and coconuts. Which of the following statements best describes the purpose of the production possibilities curve for this island?

• It predicts the future production of seafood and coconuts for the nation.

• It identifies trends in the production of seafood and coconuts.

• It shows which product, seafood or coconuts, is more profitable.

• It identifies all possible combinations of seafood and coconuts the economy can produce.

Imagine a small island economy. Which of these do its economists use to illustrate the different combinations of fish and coconuts that can be produced?

• a division of labor

• a factor of production

• a production possibilities curve

• a cost-benefit analysis

The study of economics involves

• explaining how people deal with scarcity.

• studying how things are made, bought, sold, and used.

• explaining how incomes are earned and how jobs are created.

• all of the above.

Economics is best defined as the study of how societies deal with

• the factors of production.

• the problem of scarcity.

• the paradox of wealth.

• the division of labor.