Fundamentals Practice Test

Front

Which of the following is counted as physical capital? Land, worker, Hammer, water

Back

Hammer

Front

Because resources have many uses...

Back

Resources must be allocated.

Front

The two characteristics of a scarce good are...

Back

Limited and Desirable

Front

Which of the following is a part of microeconomics?
explaining why the price of rice has fallen,
explaining why people are unemployed,
measuring price growth in the economy,
measuring the GDP of a nation

Back

explaining why the price of rice has fallen

Front

What are the 3 economics questions that all nations must answer?

Back

What to produce? How to Produce? For whom to produce?

Front

Which of the following would be considered a natural resource?
Fishing grounds in the South Pacific,
Animal reserves in Africa,
Petroleum in the Middle East,
All of the above

Back

All of the above

Front

A market economy best solves the economic problem of scarcity by...

Back

allowing producers and consumers to use self-interest to determine the production and consumption of a society.

Front

Which of the following would cause a production possibilities curve to shift outward? More vacation time, Less workers in the workforce, An increase in immigration, A decrease in the retirement age

Back

An increase in immigration

Front

Which point of the production possibility curve would be considered as unattainable with current resources? A, X, D, B

Back

X

Front

Which of the following statements about the production possibilities curve is true? Point A is not attainable, The relative position of points reflect production alternatives rather than relative prices, Point X is inefficient, None of the Above

Back

The relative position of points reflect production alternatives rather than relative prices