Drag and drop

When a country's economy grows, it is most evident through an increase in

• the production of goods and services.

• its economic interdependence with other countries.

• the opportunity cost of its decisions.

• its capital and labor resources.

Imagine a factory producing bicycles. The number of bicycles produced in an hour using a set amount of steel and labor is referred to as

• productivity.

• human capital.

• efficiency.

• investment risk.

Division of labor is practiced in a car manufacturing plant 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 engine installation or painting.

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

Which of the following would result in a change in the production possibilities frontier in the country of 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 business innovator has introduced a groundbreaking technology that doubles the efficiency of manufacturing processes. What impact is this likely to have on 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 in exchange for his labor. Dave is participating in

• entrepreneurship.

• human capital.

• the product market.

• the factor market.

Imagine a country that can produce only two goods: wine and cheese. Which of the following statements best describes the purpose of the production possibilities curve in this context?

• It predicts the future production of wine and cheese in the country.

• It identifies trends in wine and cheese production over time.

• It shows which product, wine or cheese, is more profitable to produce.

• It identifies all possible combinations of wine and cheese that the country can produce.

Imagine a country that can produce only two goods: wine and cheese. Which of these do economists use to illustrate the different combinations of wine and cheese that the country can produce?

• a division of labor

• a factor of production

• a production possibilities curve

• a cost-benefit analysis

Imagine you have a limited budget for the month. The study of economics involves:

• explaining how you decide what to buy with your limited money.

• studying how products you wish to buy are made, bought, sold, and used.

• explaining how you can earn more money and how new 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.