MSTEP Review #4 Economics

Front

Which of the following is an example of the effects of competition in the economy? A gas station goes out of business because of a fire. A gas station raises its prices because of an oil shortage. A gas station lowers its prices when the price of oil goes down. A gas station lowers its prices when a new gas station opens up next door.

Back

A gas station lowers its prices when a new gas station opens up next door.

Front

Which of the following describes an entrepreneur? A person who is hired to work in a factory. A person who organizes, operates, and assumes the risk for a business venture. A person who organizes loans the money to a new business just getting started. A person who invests in businesses to make money.

Back

A person who organizes, operates, and assumes the risk for a business venture.

Front

Why are fire departments considered a public service?

Back

They are created and funded by the government

Front

Which is a service produced by the public sector? Options: police services, hair salon services, internet services, car repair services

Back

police services

Front

Which service in the community is usually produced by the private sector? Options: electricity, road repair, banking, education

Back

banking

Front

Which of the following is a private good or service? Options: the parks and recreation department, Lake Michigan, the agricultural extension agency.

Back

a landscape architect

Front

What sector of the economy do Jane and her husband belong to?

Back

Households

Front

Where buyers and sellers exchange goods and services.

Back

market

Front

People who produce goods and services.

Back

producer

Front

What you give up when making a decision.

Back

opportunity cost