According to economic theory, when does scarcity occur?

when there are not enough resources to produce all of the things a society would like to have

when a society has more resources than it needs to produce goods and services

when inflation occurs and demand for goods and services decreases

when inflation occurs and demand for goods and services increases

Which of the following best describes an opportunity cost?

an individual pays for a guitar lesson instead of going to the movies

the additional cost of producing one additional unit of output

an individual goes to the movies and decides to buy popcorn

the real price of items increases as the value of money decreases

Which of the following is the best example of a fixed cost?

c. a payment on an adjustable rate mortgage

What are the factors of production?

natural resources, labor, capital, and entrepreneurs

natural resources, labor, capital, and money

natural resources, capital, goods, and services

natural resources, money, labor, and entrepreneurs

Which of the following best defines Gross Domestic Product (GDP)?

the total value of all final goods and services produced in a single year

the total value of any goods and services produced in a single year

the total value of all capital good and services produced in a single year

the total value of all labor produced in a single year

What are the major characteristics of capitalism?

markets, private property, competition, and profits

competition, profit, and government ownership of resources

government set prices and private property

competition, profit, and production based on custom and tradition

Which of the following is NOT a microeconomic question?

How is the unemployment rate related to business cycles?

How do labor unions influence wages in the trucking industry?

What happens to a firm’s revenue if they increase a good’s price?

How should a firm respond if it knows a competing firm will advertise?

How does a mother’s education influence a child’s health?

What are the four categories of resources? Choose 1 answer:

Land resources, labor, capital goods, and entrepreneurship

Machines, technology, minerals, and energy resources

High skilled workers, low skilled workers, knowledge workers, and service sector workers

Information technology, physical capital, financial capital, and high skilled workers

Forest, minerals, ocean, and energy resources

When a firm decides on the right mix of capital and labor to use, which of the three basic economic questions does it answer?

How to produce goods and services?

To whom do these goods and services go?

Where to produce goods and services?

When to produce goods and services?

Brian is a manager who made triple chocolate chip cookies for his team. When he decides whether those on his team who worked hardest should get more cookies, or just split them up equally, which of the three basic economic questions does he answer?

To whom do these goods and services go?

How to produce goods and services?

Where to produce goods and services?

When to produce goods and services?

One weakness of the sole proprietorship is that the

business depends solely on the owner.

business is in constant danger of bankruptcy.

As a consumer, if the price of apples doubles and your salary remains the same, you would probably

buys the same number of apples.

If the price of a product decreases and consumers buy more of the product,

a change in quantity demanded has taken place.

a change in demand has taken place.

the product is a complementary product.

there has been an increase in demand.

Because the demand for local telephone service is relatively inelastic,

modest price increases have little or no impact on quantity demanded.

the government cannot tax telephone rates.

consumers should make as few long-distance calls as possible.

the number of telephones in the home has increased.

You are the proud owner of the video game FIFA 2023. The opportunity cost of playing this game again is

the value of the time you could have used for something else instead of playing the game.

zero since it is a depreciable asset, and a newer version will be released.

half the price of the game because you have already played it twice.

not calculable because we do not know the value of the individual’s time or the original cost of the game.

the price of the game compared to the cost of other activities the individual may have done

Nader works in a café on the weekends for $9/hour. He decides to skip his four-hour shift on Saturday to play basketball with his friends. What was the opportunity cost of his choice to play basketball?

$0 because he wanted to play basketball.

how do people make decision to face scarcity

B. select what they need from the limited resources available.

determine their taxable income and tax liability.

C. react to the news when there is a war or a drought.

D. gather knowledge and abilities via education and work experience.

E. determine what they would be wise to buy.

Macroland is now working at Point A. This indicates that

D. resources in the economy are being utilized inefficiently.

A. the availability of technology is affecting production.

B. the economy has reached full employment and is producing efficiently.

C. the economy does that have access to sufficient resources.

E. resources have been depleted, so increased production is not possible.

The production potential frontier for Macroland is bowed out because

A. there are increasing opportunity costs when workers shift between those sectors.

B. there is an imbalance in trade between the two sectors.

C. there is very little unemployment in the economy, so it is difficult to find workers.

D. there is a need for specialized tools for both sectors, but the opportunity costs to create them are too high.

E. there are decreasing opportunity costs because of the availability of more advanced technology

Which of the following would most likely result in a change in orange juice demand from D1 to D0?

E. a rise in income, assuming this orange juice is considered a normal good

A. a rise in the price of bottles of orange juice

B. a rise in the price of oranges used to make juice

C. a reduction in the price of orange juice, assuming this orange juice is an inferior good

D. a rise in the quantity of oranges available to make juice

0. Demand for a manufacturer’s electronic products declines because of widespread defects in their products. The price of the unique charging cables for these electronic products declines because

B. these goods are complementary.

C. these are independent goods.

D. there is no relationship between the price elasticity of these goods.

E. there is a positive cross-price elasticity for these goods

The supply of the product shown is

B. inelastic or less than unit elastic.

D. elastic or more than unit elastic.

What is the primary purpose of a market economy?

To allocate resources efficiently through supply and demand

To control prices through government intervention

To ensure equal distribution of wealth

Which of the following best describes a variable cost?

Costs that change with the level of output

Costs that are incurred only once

Costs that remain constant regardless of production levels

In economics, what does the term 'diminishing returns' refer to?

The decrease in output as more units of a variable input are added

The increase in costs as production increases

The constant output regardless of input changes

The increase in output as more units of a variable input are added

What does the term 'inflation' refer to in economics?

the increase in the general price level of goods and services

the rate at which money is circulated in an economy

the decrease in the general price level of goods and services

the total value of goods produced in a country

EST Economic Feb Test 1

Authored by suzan Mansour

Social Studies

12th Grade

Used 9+ times

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MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following best describes what we mean by resources in economics?

Natural resources like natural gas and trees

The factors used to produce goods and services

Human resources like workers

The ability to handle a situation

Monetary wealth

MULTIPLE SELECT QUESTION

30 sec • 1 pt

When a government decides only people who have paid an annual fee will get certain services, such as firefighting services, which of the three economic questions does it answer?

Who should get the goods produced?

Is it fair to deny services?

How should it be produced?

What should be produced?

Is this a good way to allocate services?

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Economics may best be defined as a

scientific study of supply and demand.

study of efforts to satisfy seemingly unlimited wants with scarce resources.

limited description of economic activities.

branch of sociology.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A basic requirement for survival is a(n)

need.

want.

opportunity cost.

paradox of value.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

An economic system is successful when it

creates a large number of wealthy people.

maintains normal unemployment levels.

controls government agencies.

satisfies the needs of its people.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

An entrepreneur would most likely have the best chance for success in

a command economy.

a market economy.

a traditional economy.

any of the economies.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Changes in a market economy tend to be

revolutionary.

prohibited.

gradual.

discouraged.

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EST Economic Feb Test 1

Which of the following best describes what we mean by resources in economics?

When a government decides only people who have paid an annual fee will get certain services, such as firefighting services, which of the three economic questions does it answer?

Economics may best be defined as a

A basic requirement for survival is a(n)

An economic system is successful when it

An entrepreneur would most likely have the best chance for success in

Changes in a market economy tend to be

Which term is used to describe the study of how people make decisions in a world where resources are limited?

According to economic theory, when does scarcity occur?

When deciding between renovating a water treatment plant or building a new community pool, what is the government most likely to consider?

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