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Basic Fundamentals Practice Questions

Basic Fundamentals Practice Questions. Basic fundamentals question 1. Which describes scarcity? A      A condition where supply exceeds demand. B       The situation that exists when there is temporarily a shortage of a good or service. C      Unlimited wants exceeding limited resources.

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Basic Fundamentals Practice Questions

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  1. Basic Fundamentals Practice Questions

  2. Basic fundamentals question 1 • Which describes scarcity? • A      A condition where supply exceeds demand. • B       The situation that exists when there is temporarily a shortage of a good or service. • C      Unlimited wants exceeding limited resources. • D      An unlimited demand for goods and services.

  3. Basic fundamentals question 1 Which describes scarcity? A      A condition where supply exceeds demand. B       The situation that exists when there is temporarily a shortage of a good or service. C      Unlimited wants exceeding limited resources. D      An unlimited demand for goods and services.

  4. Basic fundamentals question 2 • In the production of chocolate chip cookies, which represents the factor of capital? • A      the dough used to bake the cookies • B       the oven used to bake the cookies • C      the worker who decorates the cookies • D      the retailer who sells the cookies

  5. Basic fundamentals question 2 In the production of chocolate chip cookies, which represents the factor of capital? A      the dough used to bake the cookies B       the oven used to bake the cookies C      the worker who decorates the cookies D      the retailer who sells the cookies

  6. Basic fundamentals question 3 • Which is a human resource that Ms. Johnson could use for her art gallery? • A      Light fixtures to help display the artwork • B       A security system to protect the artwork • C      Knowledge of trends in modern art • D      A series of paintings by a prominent local artist

  7. Basic fundamentals question 3 Which is a human resource that Ms. Johnson could use for her art gallery? A      Light fixtures to help display the artwork B       A security system to protect the artwork C      Knowledge of trends in modern art D      A series of paintings by a prominent local artist

  8. Basic fundamentals question 4 • Opportunity cost is best described as the • A      sum of all production costs • B       most expensive resource used in production • C      value of the best alternative forgone when a choice is made • D      monetary value of all alternatives forgone when a choice is made

  9. Basic fundamentals question 4 Opportunity cost is best described as the A      sum of all production costs B       most expensive resource used in production C      value of the best alternative forgone when a choice is made D      monetary value of all alternatives forgone when a choice is made

  10. Basic fundamentals question 5 • Based on the PPF, which is true about countries A and B? • A      Country A has fewer resources to make fish, but more resources to make coconuts • B       Country B has fewer resources to make fish, but more resources to make coconuts • C      Country A has more total resources. • D      Country B has more total resources.

  11. Basic fundamentals question 5 Based on the PPF, which is true about countries A and B? A      Country A has fewer resources to make fish, but more resources to make coconuts B       Country B has fewer resources to make fish, but more resources to make coconuts C      Country A has more total resources. D      Country B has more total resources.

  12. Basic fundamentals question 6 • Which statement is true about the graphic above? • A      Moving from point X to point Y incurs an opportunity cost of guns. • B       At point X, this country is producing more butter than guns. • C      Moving from point X to point Y incurs and opportunity cost of butter. • D      This country does not have to give up any guns to produce more butter.

  13. Basic fundamentals question 6 Which statement is true about the graphic above? A      Moving from point X to point Y incurs an opportunity cost of guns. B       At point X, this country is producing more butter than guns. C      Moving from point X to point Y incurs and opportunity cost of butter. D      This country does not have to give up any guns to produce more butter.

  14. Basic fundamentals question 7 • If this country decides to produce 40 pounds of cheese, what is their opportunity cost? • A      20 pounds of cheese • B       6 gallons of milk • C      8 gallons of milk • D      40 pounds of cheese

  15. Basic fundamentals question 7 If this country decides to produce 40 pounds of cheese, what is their opportunity cost? A      20 pounds of cheese B       6 gallons of milk C      8 gallons of milk D      40 pounds of cheese

  16. Basic fundamentals question 8 • Which of the following is NOT one of the three basic economic questions that must be answered in an economy? • A      What to produce • B       When to produce • C      How to produce • D      For Whom to produce

  17. Basic fundamentals question 8 Which of the following is NOT one of the three basic economic questions that must be answered in an economy? A      What to produce B       When to produce C      How to produce D      For Whom to produce

  18. Basic fundamentals question 9 • Competition and free enterprise are most common in which type of economic system? • A      traditional • B       market • C      communist • D      planned

  19. Basic fundamentals question 9 Competition and free enterprise are most common in which type of economic system? A      traditional B       market C      communist D      planned

  20. Basic fundamentals question 10 • Which type of economic system is MOST likely to experience high amounts of government regulation and low amounts or private ownership? • A      market • B       command • C      traditional • D      international

  21. Basic fundamentals question 10 Which type of economic system is MOST likely to experience high amounts of government regulation and low amounts or private ownership? A      market B       command C      traditional D      international

  22. Basic fundamentals question 11 • Because they have greater government involvement, command economies tend to be better than market economies at meeting which economic goal? • A      freedom • B       incentives • C      efficiency • D      equity

  23. Basic fundamentals question 11 Because they have greater government involvement, command economies tend to be better than market economies at meeting which economic goal? A      freedom B       incentives C      efficiency D      equity

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