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Basic Economics (55-61)

Basic Economics (55-61). 1. Joe has $100. He needs a new jacket and would like to buy a pair of tickets for Sunday’s game. He cannot afford both. He buys the jacket. What is the opportunity cost? A. The jacket B. The tickets C. The $100 D. The time spent at the game.

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Basic Economics (55-61)

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  1. Basic Economics(55-61)

  2. 1. Joe has $100. He needs a new jacket and would like to buy a pair of tickets for Sunday’s game. He cannot afford both. He buys the jacket. What is the opportunity cost?A. The jacketB. The ticketsC. The $100D. The time spent at the game

  3. 2. In the above scenario, what is the scarce resource?A. The jacketB. The ticketsC. MoneyD. None are scarce

  4. 3. Which of the following is a land resource?A. TeacherB. BulldozerC. CoalD. A diamond ring

  5. 4. Which of the following is a capital resource?A. Teacher B. BulldozerC. CoalD. A river

  6. 5. Which of the following is a labor resource?A. Coal B. DoctorC. BulldozerD. Natural Gas

  7. 6. Which of the following is true concerning the division of labor?A. Productivity is not affected by it.B. Society does not benefit from it.C. Production increases and the standard of living improved.D. There are no examples of the division of labor within the schools.

  8. 7. Exchanging one item for the use of another is called a(n) _______________.A. Opportunity costB. Trade-offC. ScarcityD. Factor of production

  9. 8. What forces individuals and nations to make decisions?A. Laissez-faire economicsB. The invisible hand theoryC. Scarce resourcesD. The unlimited resources

  10. 9. In which economic system would the government answer all of the basic economic questions?A. TraditionalB. CommandC. MixedD. Free Market

  11. 10. Which economic system has the least amount of government regulation?A. Pure CommandB. Mixed Economy that leans toward a command economyC. Mixed Economy that leans toward a pure market economyD. A pure free market

  12. 11. The Baka of Cameroon, Africa are a semi-nomadic people who rely heavily on custom and religion in determining who will produce what, how goods will be produced, and who will share in what is produced. What economic system best describes these people?A. TraditionalB. CommandC. Mixed D. Free Market

  13. 12. Of the following, which statement best describes the economic system in the U.S.?A. A traditional economy where men perform certain work that women cannotB. A mixed economy that has extreme government regulationsC. A mixed economy that is closer to a free market than mostD. A pure command economy

  14. 13. If the U.S. spends more money on military goods this year than last; which of the following will also occur?A. America is guaranteed it will not be attacked.B. Less money will be spent on Civilian goods (Social Programs).C. The military will be made weaker.D. The stock market will drop

  15. 14. The most common economic system is a _____________ economy.A. CommandB. MarketC. MixedD. Traditional

  16. 15. Adam Smith advocated which economic system?A. Command B. MarketC. MixedD. Traditional

  17. 16. The invisible hand represents _______________.A. Laissez-faire economicsB. Private propertyC. Freedom of choiceD. Competition

  18. 17. Adam Smith advocated an economy that was free from government regulation. This is called __________________.A. Laissez-faireB. The invisible hand theoryC. Profit incentiveD. Communism

  19. 18. Which of the following statements best describes Adam Smith’s invisible hand theory?A. The government should provide for the welfare of all it’s people.B. Competition will improve economic conditions better than the governmentC. Greed is a necessary evilD. The love of money is the root of all evil

  20. 19. The desire one has to make money is called __________________.A. Private PropertyB. Free EnterpriseC. Profit IncentiveD. The invisible hand

  21. 20. Bartering is characteristic of which economic system?A. Traditional B. CommandC. Free MarketD. Mixed

  22. 21. Lower prices, better wages, and improved quality result from ________________.A. Government regulationB. Command EconomyC. TraditionsD. Competition

  23. 22. The basic problem in economics is ________________.A. Commodity GoodsB. Supply and DemandC. InflationD. Scarcity

  24. 23. Technology has what economic impact?A. Increases competitionB. Increases productionC. Slows economic growthD. Causes inflation

  25. 24. Breaking a job into several smaller jobs (such as carpenters do when building a house; some do the roof, others do the walls, ect…..)is called_____________.A. Profit incentiveB. EntrepreneurshipC. Division of LaborD. Factor of Production

  26. 25. The willingness and ability of consumers to purchase goods and services at different prices in the market?A. SupplyB. DemandC. Law of demandD. Law of diminishing marginal utility

  27. 26. As the price of a product rises, what will happen to its’ demand?A. Remain the sameB. RiseC. DropD. Inflate

  28. 27. Which economic law is defined as follows? As the price of a good or service rises, so does its’ supply; as the price drops, so does the supply.A. The law of supplyB. The law of demandC. The law of diminishing returnsD. The law of elasticity

  29. 28. Which economic law is defined as follows? As the price rises the demand falls; as the price fall the demand rises.A. The law of supplyB. The law of demandC. The law of diminishing marginal utilityD. The law of diminishing returns

  30. 29. The willingness and ability of producers to provide goods and services at different prices in the market is called _______________.A. ElasticityB. DemandC. SupplyD. Inelasticity of Demand

  31. 30. Which of the following is the best reason for producers providing more goods and services at higher prices?A. Profit IncentiveB. Social consciousnessC. Division of laborD. Competition

  32. 31. Which statement is true concerning goods with more elastic demand schedules?A. They have fewer substitutesB. They have more substitutesC. They are necessitiesD. Both A and C

  33. 32. The more of an item is consumed the less satisfaction is received with each additional unit. Which economic law is this?A. Law of supplyB. Law of demandC. Law of Diminishing ReturnsD. Law of Diminishing Utility

  34. 33. The point where supply and demand meet is called the ______________.A. Surplus PriceB. Shortage Price C. Market PriceD. Elasticity

  35. 34. Which of the following is a substitute good for Chicken?A. Ice CreamB. PepsiC. PorkD. All of the above

  36. 35. Which of the following is a complimentary good for taco shells?A. BeefB. MilkC. HoneyD. Mustard

  37. 36. What will happen to the demand for Pepsi if coca-cola prices rise?A. The demand for Pepsi will decreaseB. The demand for Pepsi will remain the sameC. The demand for Pepsi will increaseD. None of the above

  38. 37. The economic condition that occurs above the equilibrium price is called a _______________.A. ShortageB. SurplusC. Elasticity of DemandD. Real Income Effect

  39. 38. If the unemployment rate decreases, what will the impact be?A. Demand for goods and services will increaseB. Demand for goods and services will decreaseC. Supply will increaseD. Supply will decrease

  40. 39. If S1 is the original supply curve; which curve represents a decrease in supply? A. S2 B. S3 S2 S1 S3

  41. 40. If S1 is the original supply curve; which curve is the likely result of an increase in the cost of production? A. S2 B. S3 S2 S1 S3

  42. 41. If S1 is the original supply curve; which curve is the likely result of a strike by employees? A. S2 B. S3 S2 S1 S3

  43. 42. If D1 is the original demand curve; which curve represents a increase in demand? A. D2 B. D3 D3 D1 D2

  44. 43. If D1 is the original demand curve; which curve is the likely result of a drop in the price of a substitute good? A. D2 B. D3 D3 D1 D2

  45. 44. If D1 is the original demand curve; which curve is the likely result from a decrease in the unemployment rate? A. D2 B. D3 D3 D1 D2

  46. 2.00 .75 45. What is the market price? A. .50 B. .75 C. 1.00 D. 2.00 1.00 .50 S1 D1 0

  47. 2.00 .75 46. What economic condition is occurring above the market price? A. Shortage B. Surplus C. Inflation D. Deflation 1.00 .50 S1 D1 0

  48. 2.00 .75 47. What economic condition is occurring below the market price? A. Shortage B. Surplus C. Inflation D. Deflation 1.00 .50 S1 D1 0

  49. 48. The price where the supply and the demand of a product meet is called what?A. demand priceB. supply price C. equilibrium priceD. none of the above

  50. 49. If the demand does not change significantly due to a change in price, the item is said to be ________________ in demand.A. inelasticB. elasticC. surplusD. shortage

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