Scarcity
Why does scarcity occur?
Because there are not enough resources to produce everything people want and need.
What does GDP measure?
The value of goods and services produced in an economy in one year.
Which is an example of a renewable resource?
1. oil
2. trees
1. oil (INCORRECT)
2. trees (CORRECT)
What is a benefit of outsourcing?
1. Fewer goods will be produced.
2. More goods can be produced at less expense.
1. Fewer goods will be produced. (INCORRECT)
2. More goods can be produced at less expense. (CORRECT)
What type of economy is the U.S?
Mixed Economy
What is the basic goal of all economic systems?
To decide how to use limited resources to meet unlimited wants and needs.
Which would be included in the GDP of the US?
1. A sporting goods company produces footballs in its Ohio factory.
2. A U.S. car manufacturer has headlights for its vehicles assembled in Mexico.
1. A sporting goods company produces footballs in its Ohio factory. (CORRECT)
2. A U.S. car manufacturer has headlights for its vehicles assembled in Mexico. (INCORRECT)
Which factor of production is human effort?
1. Labor
2. Machine
1. Labor (CORRECT)
2. Machine (INCORRECT)
What type of economic activity is closest to a large city?
1. a steel factory
2. a cattle ranch
1. a steel factory (CORRECT)
2. a cattle ranch (INCORRECT)
Which factor of production includes physical and mental effort?
1. capital
2. labor
1. capital (INCORRECT)
2. labor (CORRECT)
Why do nonrenewable resources affect the economy?
They are being used up.
What is the advantage of international trade for a country?
1. International trade can decrease interdependence.
2. International trade can contribute to its economic growth.
1. International trade can decrease interdependence. (INCORRECT)
2. International trade can contribute to its economic growth. (CORRECT)
Under which circumstance would a country import oil?
1. The country has more oil than it needs to run its economy.
2. The country can only produce a limited amount of oil.
1. The country has more oil than it needs to run its economy. (INCORRECT)
2. The country can only produce a limited amount of oil. (CORRECT)
What shows a company practicing sustainability?
1. A company pumps as much oil from a well as it can get and then closes the well.
2. A company plants new trees after cutting down mature trees.
1. A company pumps as much oil from a well as it can get and then closes the well. (INCORRECT)
2. A company plants new trees after cutting down mature trees. (CORRECT)
What is a primary job?
1. auto mechanic
2. coal miner
3. bank clerk
1. auto mechanic (INCORRECT)- tertiary
2. coal miner (CORRECT)-primary
3. bank clerk (INCORRECT)- tertiary
DAILY DOUBLE (DOUBLE THE POINTS)
What is complementarity?
The relationship between two places for the demand and supply of a product.
What type of economic system gives very little choice or freedom?
Command economy.
Which factor promotes trade among countries?
1. extra tariffs (taxes) on imported goods
2. Unequal distribution of resources.
1. extra tariffs (taxes) on imported goods (INCORRECT)
2. Unequal distribution of resources. (CORRECT)
Which describes a newly industrialized country?
1. Countries with decreasing life expectancy
2. countries transitioning from agriculture to manufacturing
1. Countries with decreasing life expectancy (INCORRECT)
2. countries transitioning from agriculture to manufacturing (CORRECT)
What is a digital native?
Someone who grew up with internet access, mobile technology, and digital information.
What is one key difference between international and domestic trade?
1. International trade is focused mainly on goods and services, not on the factors of production.
2.International trade is usually cheaper than domestic trade because of trade agreements.
1. International trade is focused mainly on goods and services, not on the factors of production. (CORRECT)
2.International trade is usually cheaper than domestic trade because of trade agreements. (INCORRECT)
What is a characteristic of more developed countries?
1. low standards of living
2. Highly developed economies.
1. low standards of living (INCORRECT)
2. Highly developed economies. (CORRECT)
What is a benefit of globalization?
1. People have access to more goods and services.
2. Forests and grasslands are increased.
1. People have access to more goods and services. (CORRECT)
2. Forests and grasslands are increased. (INCORRECT)
What does GDP stand for?
Gross Domestic Product
DAILY DOUBLE (DOUBLE THE POINTS)
What is opportunity cost?
Represents the potential benefits that an individual misses out on when choosing one alternative over another.