Economics Review 2

The ACME Company has decided to manufacture its line of products exclusively with resources that have low scarcity. Which of the following are most likely to be the direct result of ACME’s decision:

• ACME will spend less to produce its products.

• ACME’s products will be more likely to satisfy consumer needs.

• ACME’s products will be popular with the public.

• ACME’s products will be more profitable than those produced with high scarcity resources.

The four kinds of resources needed to provide goods and services include:

• capital, natural, introducership, and labor

• entrepreneurship, labor, natural and capital.

• natural, unnatural, capital and labor

• animal, mineral, manufactural, and decimal

Scarcity’s most immediate effect on human behavior is to

• require people to allocate resources to satisfy needs and wants..

• force the human race to acknowledge how powerless it really is.

• trick people into believing there’s isn’t plenty to go around.

• undermine religious belief.

The four kinds of resources needed to provide goods or services are called:

• The Four Facets of Production

• The Four Fallacies of Production

• The Four Factors of Production

• The Four Fixtures of Production

Check out this production possibilities curve. Point X represents:

• An inefficient allocation of resources.

• A balanced allocation of resources.

• Ideal production efficiency.

• An unattainable level of production.

Ricardo works part time at a local computer store. One day, his manager approaches him about moving from cashier to floor supervisor. Ricardo is excited because the promotion comes with a raise; however, the extra work hours would take away from time with his friends. In the end, he decides to take the promotion. What is Ricardo’s opportunity cost?

• Losing extra time to spend with his friends.

• Being able to use the extra money for summer football camp.

• Losing the ability to spend any time with his friends.

• Receiving another promotion in six months.

In a command economy, producers decide what to produce based on:

• What they think they can sell.

• What is permitted under government regulation.

• Whatever they want because producers and the government are the same thing.

• Whatever it was that their parents produced.

In a traditional economy, producers decide what to produce based on:

• What they think they can sell.

• What is permitted under government regulations.

• Whatever they want because producers and the government are the same thing.

• Whatever it was that their parents produced.

There may be a strong emphasis on hunting and farming.

• Traditional

• Command

• Market

• Mixed

A market economy places the greatest value on:

• Government dependency.

• Traditional customs.

• Equality.

• Economic choice.