Economics: Unit 1 Exam Prep

Which of these is an example of a natural resource?

• highway

• forests

• truck

Which of these productive resources includes factories, tools, trucks, machines, and computers?

• human resources

• natural resources

• capital goods

Most economies today are

• pure market economies

• traditional economies

• mixed economies

Which type of economy makes the highest standard of living for its citizens?

• market-oriented

• traditional

• transitional

According to the law of comparative advantage, the country with the lowest opportunity cost of producing a particular good should

• specialize in that good.

• outsource production.

• import foreign worker.

Which factor would be the best to help an economy to grow?

• lowering education

• cleaner air

• labor force increases

In a pure command economy which of the following occurs

• living space is sold in the free market

• decisions are based on tradition

• resources are controlled.

An economic system in which all resources are government-owned and all production is directed by the central plans of government is known as a

• pure market economy.

• mixed economy.

• pure command economy.

An example of a public good, in an economic context, is

• lower new car prices.

• national defense spending.

• Greenwood Park Mall.

Points along a production possibilities frontier (PPF or PPC) represent production of two types of products that

• are most profitable for business owners.

• are most satisfying to consumers.

• make efficient use of resources.