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Quiz 2

Total questions: 59

Worksheet time: 1hrs 29mins

Name
Class
Date
1.

The crucial problem of economics is

a)

Establishing a fair tax system.

b)

Providing social goods and services

c)

Developing a price mechanism that reflects the relative scarcities of products and resources.

d)

Allocating scarce productive resources to satisfy wants

e)

Enacting a set of laws that protects resources from overuse.

2.

When one decision is made, the next best alternative not selected is called

a)

economic resources

b)

opportunity cost

c)

scarcity

d)

comparative disadvantage

e)

production

3.

Which of the following is true of the concept of increasing opportunity costs?

a)

It is unimportant in command economies because of central planning.

b)

It suggests that the use of resources to produce a set of goods and services means that as more of one is produced, some of the other must be sacrificed.

c)

It is irrelevant if the production possibilities curve is convex to the origin

d)

It suggests that unlimited wants can be fulfilled.

e)

It means that resources are plentiful and opportunities to produce greater amounts of goods and services are unlimited.

4.

In the circular flow diagram, which of the following is true?

a)

Businesses pay wages, rent, interest, and profits to households in return for use of factors of production.

b)

Businesses purchase goods and services from households in return for money payments.

c)

Households pay wages, rent, interest, and profits to businesses in return for use of factors of production.

d)

The relationship between households and businesses exist only in a traditional society.

e)

The relationship between households and businesses exists only in command economy.

5.

Which of the following goods would be considered scarce?

I. Education

II. Gold

III. Time

a)

I only

b)

II only

c)

III only

d)

I and II only

e)

I, II and III

6.

In which way does a straight-line production possibilities curve differ from a concave production possibilities curve?

a)

A straight-line production possibilities curve has a decreasing opportunity cost.

b)

A straight-line production possibilities curve has a constant opportunity cost.

c)

A straight-line production possibilities curve has an increasing opportunity cost.

d)

A straight-line production possibilities curve does not show opportunity cost

e)

Upward-sloping production possibilities curve.

7.

The law of increasing opportunity cost is reflected in the shape of the

a)

Production possibilities curve concave to the origin (“bowed-out”)

b)

Production possibilities curve convex to the origin (“bowed-in”)

c)

Horizontal production possibilities curve

d)

Straight-line production possibilities curve

e)

Upward-sloping production possibilities curve

8.

Which of the following would cause an inward shift of the production possibilities curve?

a)

An increase in unemployment

b)

An increase in inflation

c)

An increase in capital equipment

d)

A decrease in consumer demand

e)

A decrease in the population

9.

Which of the following would cause an outward shift in the production possibilities curve?

a)

An increase in unemployment

b)

An increase in inflation

c)

An increase in capital equipment

d)

A decrease in natural resources

e)

A decrease in the number of workers

10.

What is the opportunity cost of moving from point B to C on the curve?

a)

30 tons of wheat

b)

30 tons of steel

c)

5 tons of wheat

d)

5 tons of steel

e)

75 tons of wheat

11.

Ford can produce 200 Mustangs or 400 Escapes in their factory. What is the opportunity cost of making each Mustang?

a)

1/2 Escape

b)

1/2 Mustang

c)

2 Escapes

d)

2 Mustangs

e)

400 Escapes

12.

What is the opportunity cost of increasing production of french fries from 11 to 18 orders?

a)

11 French Fries

b)

7 Chicken Nuggets

c)

7 French Fries

d)

48 Chicken Nuggets

e)

18 French Fries

13.

When a point lies inside of the PPC it can be said that

a)

Resources are under employed

b)

Resources are fully utilized

c)

Production is beyond the resource potential

d)

Opportunity cost of production is constant

e)

Allocative efficiency is achieved

14.

In a market economy, ___________ are relied upon to ration output.

a)

Firms

b)

Consumers

c)

Prices

d)

Supply

e)

Governments

15.

The opportunity cost of increasing production from 7 to 9 trucks is

a)

0 boats

b)

2 boats

c)

2 trucks

d)

3 boats

e)

7 trucks

16.

What can cause a production possibilities curve to move to the right?

a)

thousands of people move out of the country

b)

a drought destroys many crops

c)

new technology

d)

the population is growing increasingly old

17.
What does point Y represent on the PPC?
a)
Efficiency
b)
Unattainable / impossible
c)
Inefficency
d)
Nothing
18.
The diagram shows the production possibilities curve for Country Y. Which of the following statements is true?
a)
If Country Y is producing at point C, it is using all its resources efficiently
b)
The opportunity cost of producing more machines is constant
c)
Country Y cannot produce at point E
d)
The most efficient point of production is point D
19.

Which factor of production is this?

a)

capital

b)

entrepreneur

c)

land

d)

labor

20.

Command economies are usually dominated by:

a)

Free market enterprise

b)

Traditions, customs, and beliefs

c)

State-owned enterprise

d)

All of the above

21.

Which of the following is the best definition of the word "marginal?"

a)

Additional

b)

Abstract

c)

Econometric

d)

Complicated

22.

Which economic system provides private ownership of property and resources?

a)

Traditional Economy

b)

Free Market Capitalism

c)

Communism

d)

Command Economy

23.

The Invisible Hand concept explains

a)

consumers and producers working together with no one directing them

b)

businesses taking advantage of customers

c)

helping those who are disadvantaged

d)

economic planning and direction by experts

24.

WHAT IS LABOR?

a)

work people do for wages to produce good and services

b)

actions people do for other people

c)

any physical object

d)

The money people get for inheritance

25.
If a natural disaster strikes, the production possibilities curve can shift
a)
No shift
b)
To the left
c)
To the right
d)
Outward on one axis only
26.
Which 1991 Disney film has a female lead called Belle?
a)
Beauty and the Beast
b)
Sleeping Beauty
c)
Cinderella
d)
Aladdin
27.
Who is this character?
a)
Minnie Mouse
b)
Mickey Mouse
c)
Donald Duck
d)
Goofy
28.
What is the monkey's name in The Lion King?
a)
Rafiki
b)
Mufasa
c)
Zazu
d)
Simba
29.
Which country in the world has the largest population?
a)
Russia
b)
United States
c)
China
d)
North Korea
30.
What kind of government does China have?
a)
Democracy
b)
Monarchy
c)
Communism
d)
Anarchy
31.
Is this a fruit or a vegetable? 
a)
Vegetable 
b)
fruit 
32.
Do people eat this?
a)
That looks disgusting 
b)
yes 
c)
what is that??
d)
no
33.
Which of the following is an economic system in which a central, governmental authority decides how to use a country's scarce resources?
a)
Market economy
b)
Command economy
c)
Traditional economy
d)
Mixed economy
34.
Which of the following is an economic system in which the government and individuals are used to decide how to use scarce resources?
a)
Market economy
b)
Command economy
c)
Traditional economy
d)
Mixed economy
35.
What is human capital?
a)
Taxes collected from a country's workers
b)
Money paid to workers for producing goods
c)
Skills and education workers have
d)
The amount of goods sold in foreign trade in a year
36.
What type of economy do most countries in the world have?
a)
Market economy
b)
Command economy
c)
Traditional economy
d)
Mixed economy
37.
Which of the following is NOT one of the three basic questions of economics when looking at economic systems? 
a)
What goods should be produced ?
b)
What is the price of the goods? 
c)
How should the goods be produced? 
d)
Who gets to consume the goods? 
38.
What do businesses provide for consumers according to the circular flow model?
a)
goods and services
b)
only goods
c)
only services
d)
taxes
39.
In this market, businesses buy resources they need to produce goods and services.
a)
factor market
b)
stores
c)
product market
d)
 businesses
40.
People who take a risk by starting a business, who are search of profits, are called what?
a)
President
b)
Entrepreneur
c)
Senator
d)
Factory Worker
41.
In the circular flow model, the product market describes _____.
a)
firms sell goods and services to households
b)
the Government pays for Medicare and Social Security
c)
Households sell their factors of production to firms
d)
Households receive income from firms
42.
This economic system provides the best opportunity for entrepreneurial success, and historically has the greatest success in improving standards of living, and increasing prosperity? 
a)
Command Economy
b)
Traditional Economy
c)
Market Economy/Capitalism
d)
Mixed Economy
43.
In a capitalist or market economy, who owns the factors of production? 
a)
Households/Individuals
b)
Government
c)
Businesses
d)
Government, businesses, and households
44.
This is the study of the behavior/decision making of entire economies, not individuals.
a)
microeconomics
b)
macroeconomics
c)
finite economics
d)
economic models
45.
The concept that people have the right and privilege to control their possessions as they wish.
a)
legal equality
b)
open opportunity
c)
private property
d)
profit incentive
46.
This is the study of the behavior/decision making of individuals & businesses and how they interact with one another and the government. 
a)
microeconomics
b)
macroeconomics
c)
recession
d)
expansion
47.

Moana's village would be an example of a ___________ economy.

a)

Traditional

b)

Planned/command

c)

Mixed

d)

Free-market

48.

An example of a public good provided by the government would be:

a)

Cars

b)

Interstate highway

c)

Phones

d)

Internet

49.

_______________ would be an example of a modern mixed economy. (select all that apply!)

a)

Germany

b)

The United States

c)

North Korea

d)

Brazil

50.

__________ is an example of a planned/command economy.

a)

Capitalism

b)

Traditional

c)

Uniited States of America

d)

Communism

51.

The closest thing to a planned/command economy today exists in:

a)

Soviet Union

b)

Czechoslovakia

c)

North Korea

d)

South Korea

52.

This diagram is called a:

a)

Production Possibilities Curve

b)

Supply and Demand Curve

c)

Circular Flow Model

d)

Circular Motion Equation

53.

This circular flow model would be for a __________ economy

a)

Traditional

b)

Planned/Command

c)

Free Market

d)

Mixed Economy

54.

This circular flow model would be for a __________ economy

a)

Traditional

b)

Planned/Command

c)

Free Market

d)

Mixed Economy

55.

Define traditional market

a)

A market based on cultural rituals

b)

Relies on government to make all the decision.

c)

Consumer decisions choose how industries and financial markets work

d)

None of the above

56.

KYLIAN PLAYS FOR .....

a)

REAL MADRID

b)

INTER

c)

BARCELONA

d)

PSG

57.

Where is mbappe

a)

b)

c)

58.

Where is Messi from?

a)

Brazil

b)

Chile

c)

Argentina

d)

Peru

59.

who's better?

a)

Ronadlo

b)

Messi

c)

Mbappe

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