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WorksheetsUnit 1 Test Review
Total questions: 50
Worksheet time: 25mins
Which of the following is an example of scarcity rather than shortage?
extremely hot temperatures lead to increased air-conditiner use and power outages
There aren't enough software engineers to fill all the job openings in Silicon Valley
Newly discovered Van Gogh paintings are put up for auction and sell for millions
During the holiday season, an outfitter runs out of skis
Which of the following conclusions is compatiable with this graph?
The US has an oversupply of petroleum
The US has a scarcity of petroleum
The US exports more oil today than it did in the past<br />
The US imports more oil today than it did in the past<br />
What is the opportunity cost of going to college?
no student loan debt
high unemployment
low unemployment
significant student loan debt
This image of nearly empty shelves of bottled water indicates<br />
that there is a shortage of bottled water
that there is a scarcity of water
that water is not an abundant resources
that bottled water is a limited resources
Identify the physical capital in this photo
the house
the crop
the farmer
the tractor
Which of the following is true about the photo shown here?
This man is improving his human capital by learning a skill
This man is using up his physical capital by working hard
This man is improving the physical capital at the hospital
This man is gaining financial capital by working
In a cost/benefit analysis, what would be the benefit of taking the DNT instead of 75 and 380?
That route would cost less in tolls
That route would cost most in tolls
That route would require more travel time
That route would require less travel time
If the libraries in question are public, what trade-off is illustrated by the photograph?
lower taxes versus more government services
books versus computers and the library
bookstores versus libraries
libraries versus schools
What is Bob's opportunity cost if he decides to go out to eat with friends?
the money spent on dinner
the money saved by not going out
getting exercise
having fun with friends
Based on this infographic, what is the marginal cost of building the 1001st toy in this factory?
2
10
2000
10000
Based on the infographic, if the factory has to buy another machine in order to produce another 1,000 toyes, its marginal costs will
stay the same
increase
decrease
fluctuate
Sarah is thinking of buying an MP3 player. What would be the opportunity cost of buying the 64GB model?
having more time to listen to music
having some storage
saving a significant amount of money
havings lots of storage
Production possibilities curves are important tools for
demonstrating which products will sell better than others
comparing costs and profits of producing goods and services
determining the underutilization of an economy's resources
showing ways to use an eeconomy's productive resources
Why is the subject of the graph unable to produce any shoes when it grows 21 million tons of watermelons?
demand for shoes is limited
resources are limited
the benefit is limited
demand for watermelons is unlimited
A point to the left of the curve on the graph would indicate
overutilization of the economy
underutilization of the economy
decreased watermelon production
decreased shoe production
The shift from line A to line C means that <br />
the economy has shrunk
the economy has grown
shoes and watermelons have become more expensive
workers are probably earning less
What explains the reason that only one extra hour of study time is needed to increase a grade from a C to a B, but three extra hours of study time are required to increase from a B to an A
the law of increasing costs
the law of decreasing costs
the law of underutilization
the law of efficiency
Based on the law of increasing costs, the number that will go at the bottom of column 2 is most likely
80
90
110
120
The clothing shown in the photograph is BEST described as an example of<br />
need
want
physical capital
entrepreneurial risk taking
Why do you think there were long lines of cars in this photo from 1973?
electric cars hadn't been invented
due to a labor shortage, gas stations could not open
there was a scarcity of gas
there was a shortage of gas
Identify the potential factor of production shown in this photo?
physical capital
land
labor
risk-taking entrepreneur
What trade off is shown in this cartoon
size of car vs price of car
price of car vs fuel efficiency
size of car vs fuel efficiency
speed of car vs price of car
Which of the following would an entrepreneur do first when starting a new venture?
borrow money
find the necessary land resources
identify an unmet want
compare prices of competing goods and services
Which of the following is NOT an example of factors of production in the graphic?
natural resources
financial resources
people who do the work
acquired knowledge and skills
What is the opportunity cost of NOT going to college?
no student loan debt
high unemployment
low unemployment
significant student loan debt
What trade off would a person make by choosing the opting in the middle?
speed in favor of ease
ease in favor of speed
exercise in favor of ease
ease in favor of exercise
After considering her different options, Amelia decideds to buy fat-free ice cream. What is the benefit?
a dessert that has no sugar
a desset that is high in calories
a dessert that is very healthy
a dessert that is realitively low in calories
In the quotation above, "butter" refers to
social welfare spending
agricultural spending
commerical spending
defense spending
In the example shown here, what is the marginal cost of changing from two hours of studying to three hours of studying?
losing an hour of sleep
losing two hours of sleep
changing from a B to a B+
changing from a C to a B
Based on the table, each time this country moves more resources away from producing shoes toward growing watermelons
the cost of growing additional watermelons decreases
the cost of growing additional watermelons increases
the cost of growing additional watemelons remains the same
the cost of growing additional watermelons is not affected
What is the term used to describe a temporary low supply of a good or service?
need
scarcity
shortage
want
Someone taking a course in web design is affecting what factor of production?
human or labor
entrepreneurship
land
capital
Which of these would be an alternative use for farmland?
farm machinery
an amusement park
cash
skilled labor
Which of the following represents an undeutilization of the economic resources shown here?
15 million shoes, 10 million tons of watermelons
10 million shoes, 15 million tons of watermelons
5 million shoes, 20 million tons of watermelons
15 million shoes, 15 million tons of watermelons
What are the three factors of production?
needs, wants, choices
land, abor, capital
human capital, physical capital, intellectual capital
workers, management, entrepreneurs
Which of the following is a benefit that a business is likely to attain from purchasing new equipment?
lower costs
better entrepreneurial knowledge
fewer natural resources required
increased productivity
Why are entrepreneurs important to the economy?
They promote economic growth
they are willing to take risks
they desire profits
they have talent and imagination
A sales clerk represents which factor of production?
land
entrepreneur
capital
labor
Why is there scarcity even in an affluent country like the United States?
entrepreneurs are scarce and companies need leaders
wants are limited but needs are unlimited
resources are limited but wants are unlimited
some people are poor while others are wealthy.
Why do individuals, businesses, and governments make trade-offs
to make more money
because large groups of people cannot easily make decisions
to promote their values
because resources are limited
Which statement best describes opportunity cost?
opportunity cost is the best alternative decision
opportunity cost is the best choice in a decision
opportunity cost is all the alternatives not chosen in a decision
opportunity cost is the value in dollars of a trade-off.
