Test Review for Econ 1

Which economic concept would best complete the flow chart?

• Opportunity cost

• Consumption

• Scarcity

• Production

A local shoe store had this sign in the window. This is an example of -

• Supply and demand

• Price

• Incentive

• Opportunity cost

What economic concept best describes this scenario? Jill owns a bakery selling cakes. However, people are starting to eat healthier and are not buying as many of Jill’s cakes. Jill decides to lower the price so that she can keep selling the same number of cakes.

• Scarcity requires people to make choices

• Price is determined by supply and demand

• Opportunity cost must be considered when making choices

• Resources available determine what is produced

Jasmine has to decide between going to college and joining the workforce. What is the opportunity cost if she decides to go to college?

• Money she could have made in the workforce

• Cost of tuition, books, and room and board

• New people she will meet in college

• Amount of time she will have to study

What is the natural resource in the picture?

• Susie

• Cups

• Lemons

• Sign

Which of the following statements DOES NOT explain the picture above?

• An impending snow storm drove the demand for the bread up.

• The price of the bread items were set too high making the bread unaffordable.

• A new bread product hit the shelves offering a $1,000,000 prize to a lucky purchaser.

• A new store ran a promotional sale, marking down the cost of the bread.

The above cartoon best describes which 1 of the following economic concepts?

• Competition

• Supply and demand

• Price

• Incentive

• Opportunity cost

Which is a characteristic of a command economy?

• Consumers often face lack of product choice

• Economic decisions are based on customs

• The role of government in the economy is restricted by law

• Investment is encouraged by the promise of large profits

What are the three basic questions of economics that all societies must answer?

• For whom will it be produced?

• What will be produced?

• Who will produce it?

• How much will this cost?

• How should this be advertised?

Which of the following workforce scenarios would most likely be found in a traditional economy?

• Samuel loves science and wants to be a doctor, but is learning how to make clay bricks so that he can work with his father and grandfather.

• Ginger has graduated from high school, and now must serve in the military for two years as mandated by the government.

• Katia works as an accountant in a government-run business where she was placed after graduation.

• Ted is working towards his dream of becoming a lawyer by working as a clerk in a legal office and saving to go to college.