Economics Quiz

Any physical resources that are man made and used to create other goods and services are called...

• Land

• Labor

• Capital

• Human Capital

• Entrepreneur

Based on the table to the right, what is the marginal benefit of the 5th worker?

• 136 widgets

• 3 widgets

• 131 widgets

• 5 widgets

• 139 widgets

Which of the following is true for all economies regardless of their economic system?

• Every economy must determine what to produce and how to produce goods and services

• Every economy must find a way to distribute income equally

• Every economy must find ways to privatize markets to maximize efficiency

• Every economy must prevent unemployment through government intervention

• Every economy must open free trade with other economies

Human capital includes...

• The salary paid to an accountant

• A taxi driver's knowledge of the city streets

• The taxi cab itself.

• The equipment used by a doctor to diagnose a patient.

What is the marginal product of the 6th worker?

• 37 chairs

• $250

• 4 chairs

• -$50

How many workers should be hired, if this firm is trying to maximize their profits?

• 3

• 4

• 5

• 6

• 7

Sunk costs...

• Are costs that cannot be recovered, and should not be factored into future decisions.

• Are costs that cannot be recovered, and should be factored into future decisions.

• Are costs that are temporarily lost, but can be recovered if a project is finished.

Economies structured this way allow buyers and sellers of goods to interact to determine what to produce, prices arise to help distribute goods, and governments interact in the system to achieve their own ends and regulate the buying and selling activities of the private sector.

• Market system

• Planned system

• Command system

• Mixed system

What is the opportunity cost of a decision?

• The total value of the singular most desirable alternative choice.

• The series of alternative decisions that could have been made

• All the different ways that a different person might have made the decision

• The best possible way the question could be decided.

The U.S. Department of Labor provides unemployment financial assistance to out of work citizens. This is more a characteristic of which type of economic system?

• Planned/command

• Market