Fundamentals Practice

What is the best title for the list below?

-skills

-tools

-knowledge

• Land

• Labor

• Entrepreneur

• Capital

When Tim goes to school to gain more training and knowledge he building his...

• Land

• Human capital

• Physical capital

• Labor

Terry wants to buy a double quarter pounder with cheese and fries from McDonalds. His mother only gave him $5.00. If Terry buys the fries, which of the following is his opportunity cost?

• The price of the fries

• The price of the double quarter pounder

• His satisfaction of the double quarter pounder

• His satisfaction of the fries

Which of the following is an example of negative incentive?

• Some working hard for a job promotion.

• A student doing make-up work to fix their low grades.

• Deciding to go to a certain college because they provide you with what you want.

• Getting some Sun because it helps you to feel better.

Which of the following is not an example of a public good?

• National Defense

• Knowledge

• Public Parks

• Netflix

A production possibilities curve shows

• Supply and Demand

• Potential opportunity costs that occur during production.

• How some things could be considered inelastic in their price.

• .The amount of something that is available.

Which group of people ultimately determines the products that are produced in a pure market economy?

• Consumers and Producers

• The government

• The suppliers only

• The entrepreneurs

Which of the following is not scarce?

• Time

• Water in a desert

• Garbage

• Clean Air

Which answer represents an advantage that a market economy has over a mixed economy?

• more limits on profits

• more control over prices and wages

• more security and equity for producers and consumers

• more freedom and efficiency for producers and consumers

In the image below, what does point D represent?

• Maximum Number of both houses and automobiles

• Mostly Houses, Few Automobiles

• Inefficient use of resources

• Mostly Automobiles, Few Houses