Economics Quiz

Which of the following statements best describes the purpose of the production possibilities curve?

• It predicts the future production of a nation.

• It identifies trends in production.

• It shows which products are most profitable.

• It identifies all possible combinations of goods and services an economy can produce.

The most comprehensive measure of a nation’s wealth is provided by its

• gross domestic product.

• TINSTAAFL rating.

• product possibilities curve.

• capital goods.

When a nation’s total output increases over time, the nation is experiencing

• a decrease in gross domestic product.

• economic growth.

• economic interdependence.

• an expansion of the possibilities curve.

Which of the following descriptions best explains the meaning of opportunity cost?

• the initial cost of starting a new business

• the cost of business failure

• the cost of choosing one alternative over another

• the risk associated with producing a new item

Consumers waiting in long lines for a new product is an example of

• consumerism.

• consumer rights.

• consumer responsibilities.

• scarcity.

When a business needs to decide whether a certain action is worth the cost, the most helpful analysis would be a(n)

• production possibility comparison.

• cost-benefit analysis.

• economic model.

• needs assessment.

The efficient use of scarce resources leads to an increase in

• productivity.

• investment.

• scarcity.

• capital.

How many factors of production are needed to produce a good or service?

• 2

• 4

• 6

• 8

These are the things we desire to have.

• Wants

• Goals

• Opportunity Costs

Because of scarcity, people are forced to make _________ about how to use resources.

• Choices

• Opportunities

• Houses

• Desires