Intro to Econ Test Review

Front

In what market do businesses sell goods and services to households?

Back

Product Market

Front

In the circular flow diagram firms pay wages for which factor of production?

Back

Labor

Front

A person stocks shelves at a grocery store and receives a wage. They have completed an exchange in which part of the circular flow model?

Back

Factor Market

Front

Someone buys a car in exchange for a large amount of money. They have completed an exchange in which part of the circular flow model?

Back

Product Market

Front

Governments provide businesses with public goods and in return businesses give____________ to the government.

Back

Taxes

Front

What is the marginal benefit of one more gallon of gas, when you currently have 1 gallons?

Back

5, $5

Front

You try a new dinner recipe, and it goes horribly wrong. You have 4 dinner portions of a meal you value at negative $5.00 each. You spent $20 on ingredients. How many portions of the meal should you eat in the next few days?

Back

Zero portions

Front

What is the opportunity cost to Picnicland of increasing the production of hotdogs from 450 to 900?

Back

225 burgers

Front

What is the opportunity cost to Footville of increasing production of shoes from 400 to 600?

Back

300 socks

Front

Which of the following points on the PPC above represents a combination of Steel & Wheat that this economy could NOT produce? A, G, D, F

Back

F