Stations Review Questions

Which of the following is an example of a natural resource?

• A truck

• Cows

• A tractor

• Oil

• Gold

Scarcity requires the condition of _________ and ___________

• Unlimited wants and limited resources

• Unlimited wants unlimited resource

• Factors of production and rational decision-making

You decide to go to medical school instead of using your degree in biology to teach. What is the opportunity cost of this choice?

• The money it will cost to go to medical school

• The time required to get your medical degree

• The money you spent on your degree in biology

• The money you could’ve earned if you got a teaching job right away

Which of the following lead to economic growth in a country? Choose all that apply.

• Better technology

• Improving skills of workers

• Division of labor

• Purchase of additional productive resources

• Giving free tuition to everyone who graduates from high school

Which of the following is an example of voluntary exchange? (multiple Correct)

• Paying $20 for popcorn at the movie theater

• Trading your shoes for your friends shoes because you like hers better

• Government allocation of physical capital

Making employees happy at your factory is an investment in human capital

• True

• False

Which of the following is an investment in capital goods? (Multiple correct)

• Buying an oven to bake cookies

• Upgrading your old machinery to new machinery

• Hiring of additional workers

• Moving some of your workers to your plant in Mexico

Sam’s portrait studio takes school photos at LHS. In order to be efficient, one person takes information from the student, another person takes the photo, and a third person reviews the photo with the student to make sure they are happy with the picture. What is this an example of?

• Capital investment

• Natural Resources

• Division of Labor

• Opportunity cost

Which economy(s) is interested in innovation and new technology?

The country of Malta mines and exports gold to countries all over the world. They want to expand their production possibilities curve. Which of the following would help them have economic growth?

• Increasing tariffs on gold coming into the country

• Increasing taxes on workers throughout the nation

• Investing in better ways to extract gold from the mines

• Outlawing college education and requiring all workers to work in the mine