Fundamentals Review

Allie is shopping when she finds a pair of running shoes priced at $90. When Allie uses her debit card to pay, it is declined because her balance is insufficient to cover the cost of the running shoes. Allie’s situation best illustrates which economic concept?

• Opportunity cost

• Scarcity

• Unlimited resources

• Trade-offs

• Trade

What is a common trait that mixed and market economies share with one another?

• Competition

• Nationalization of business

• Self-sufficiency

• Dictatorship

Under which economic system would the factors of production most likely be owned by the government?

• Market Economy

• Command Economy

• Traditional Economy

• Mixed Economy

Which of these occurs in a mixed economy?

• Private enterprises compete with the government for economic dominance

• The government and private enterprise exist together as major economic participants

• All businesses are publicly owned, but privately managed

• The government directs all economic activity

Which of the following best defines the type of economy used by generations of farmers?

• Market Economy

• Mixed Economy

• Command Economy

• Traditional Economy

Which of the following often describes the economy of the United States?

• Market Economy

• Mixed Economy

• Command Economy

• Traditional Economy

Which best demonstrates the characteristics of human capital?

• Purchasing additional land and supplies to expand production capacity at a factory

• Increasing productivity through training or education for workers

• Raising the salaries of supervisors and managers purchasing stock in several corporations

• Harvesting a crop of wheat to produce larger amounts of bread to feed the homeless

Roy attends college. He gives up his ability to earn money in a job to attend college. Which of the following best exemplifies Roy’s lost earnings?

• Trade-offs

• Opportunity Costs

• Marginal Costs

• Marginal Benefits

Samantha’s parents pay for her piano lessons. Instead of going to a movie, Samantha plays the piano at her lesson on Saturday. What type of cost best refers to the situation for Samantha?

• Marginal Cost

• Fixed Cost

• Opportunity Cost

• Residual Cost

Which of the following commonly refers to an individual who purchases goods and services?

• The end user of a good/service

• The retailer of a good/service

• The provider of a good/service

• The consumer of a good/service