Goal 7 Group and Individual Economics

1

100

The study of how firms, nations, and individuals best allocate their limited resources is called what? A. Circular Economic Activity B. Economics C. Factoring Production D. Supply and Demand

B. Economics

200

Computers, trucks, hammers, and other man-made materials would be with factor of production? A. Capital B. Entrepreneurship C. Labor D. Land

A. Capital

300

Logan starts a restaurant using his own money to purchase a building and cooking supplies such as ovens and grills. This is an example of which of the following economic terms? A. Entrepreneurship B. Productivity C. Specialization D. Investment

A. Entrepreneurship

400

What term do we use to describe items that are necessary for our survival? A. Scarcity B. Shortage C. Need D. Want

C. Need

500

Which of the following best describes factors of production? A. The resources necessary to produce goods and services B. The number of steps it takes to make a product C. The mathematical equations that determine GDP D. The goods and services that a country produces

A. The resources necessary to produce goods and services

2

100

Why is entrepreneurship in a capitalist economy? A. Maximizing manpower needed to produce goods and services B. Using all the goods and services in production C. Minimizing the social and economic risk in government D. Making a profit by taking a risk to satisfy a perceived market need

D. Making a profit by taking a risk to satisfy a perceived market need

200

Of the following, who would most likely earn the highest wage/salary? A. An unskilled blue collar worker B. A skilled white collar worker C. Someone who graduated from high school and has little additional training D. Someone who works as a hired hand on a farm

B. A skilled white collar worker

300

Producers have an incentive to produce what consumers want, because this will make them money. This is known as: A. Free Choice Market B. Open Opportunity of Market C. Profit Motive D. Perfect Competition

C. Profit Motive

400

What is the basic economic concept that indicates there are always going to be wants that go infulfilled? A. Inflation of Goods B. Rationing of Goods C. Scarcity of Goods D. Trade-off of Goods

C. Scarcity of Goods

500

Costs that can change depending on circumstances are known to business people as: A. Variable Costs B. Fixed Cost C. Marginal Costs D. Total Costs

A. Variable Costs

3

100

Division of labor is: A. Breaking a job into smaller tasks B. Comparative advantage of production C. Greater productivity D. Human-made resources in a good or service

A. Breaking a job into smaller tasks

200

Using current resources that could be spent immediatley for some greater benefit at a later time is: A. Productivity B. Capital Good C. Diminishing Returns D. Investment

D. Investment

300

Henry Ford, founder of the Ford Automotive Company, is credited with creating the assembly line. The assembly line gave each worker one task at which they could work to improve their skills. What economic concept is Ford credited with creating? A. Utilizing human capital B. Reducing supply shortages C. Improving the efficiency of workers D. creating a highly specialized workforce D.

C. Improving the efficiency of workers

400

How would one best described the opportunity cost associated with investments in the stock market? A. The investor gets a chance to earn profits in a company through stock purchase B. The money spent on stocks can no longer earn interest in another asset C. The opportunity of wealth has been used due to financial crisis of 2008 D. The stock's purchaser assumed full liability for the company's cost

B. The money spent on stocks can no longer earn interest in another asset

500

Why would the owner of a business assign teams to peform several specific tasks in that business? A. To increase productivity through efficiency of labor B. To create higher wages and salaries for workers C. To increase the profit margins of his or her business by twenty percent D. To improve the working conditions of his or her employees and meet OSHA requirements

A. To increase productivity through efficiency of labor

4

100

You went to the store over the holiday season to purchase a television. The attendant at the store told you that televisions will be sold out until Monday. What is this situation classified as? A. Scarcity B. Long term shortage C. Short term shortage D. Price fluctuation due to CPI

C. Short term shortage

200

The cost of producing each additional unit of a particular product is called: A. Fixed Cost B. Total Cost C. Marginal Cost D. Variable Cost

C. Marginal Cost

300

Samantha's parents pay for her piano lessons. Instead of going to a movie, Samantha plays the piano at her lesson on Saturday. What tyoe of cost has occured for Samantha? A. Marginal Cost B. Fixed Cost C. Opportunity Cost D. Residual Cost

C. Opportunity Cost

400

A purchase of four new pairs of a highly sought-after shoe could be described as fufilling a: A. Good B. Service C. Want D. Need

C. Want

500

Roy attends college. He gives up his ability to earn money in a job to attend college. Roy's lost earnings are example of: A. Trade-offs B. Opportunity Costs C. Marginal Costs D. Marginal Benefits

B. Opportunity Costs

5

100

Which best demonstrates the characteristics of human capital? A. Purchasing additional land and supplies to exspand production capacity at a factory B. Increasing productitivty through training or education for workers C. Raising the salaries of supervisors and managers purchasing stock in several corporations D. harvesting crop of wheat to produce larger amounts of bread to feed the homeless

B. Increasing productitivty through training or education for workers

200

An individual who purchases goods and services is commonly known as _______ A. The end user of a good/service B. The retailer of a good/service C. The provider of a good/service D. The consumer of a good/service

D. The consumer of a good/service

300

Complete the relationship below: Wool : Land Education and Training: __________ A. Productivity B. Inputs C. Trade-Offs D. Human Capital

D. Human Capital

400

Which best describes the groups affected by scarcity in the United States? A. Only Economic professors, high school students, and those who study Economics B. Poor and indigent families C. All households who consume the good that is scarce(directly or indirectly) D. The United States is not subject to scarcity. There is a large amount of supply in the United States, unlike many third world nations.

C. All households who consume the good that is scarce(directly or indirectly)

500

A clothing company manufacturers 500 anniversary editions of a shirt. Since there are so few shirts to sell, what effect will this likey have on the price of the shirt? A. The price will remain constant B. The price will be high C. The price will be low D. The price fluctuates

B. The price will be high