CBA 1 Review 2/17

Which of the following could be a determinant of reaching a point on the Production Possibilities Curve that was unreachable?

• Laying off employees

• Introducing new technologies

• Using all available resources

• Requiring workers to concentrate on their work.

A point on the Production Possibilities Curve mean which of the following?

• A combination that can be attained only if all resources are used

• A combination that is impossible for this country to attain under current conditions

• A combination that can be attained only if a technological advance occurs

• A combination that can be attained without using all the county's resources

Define "incentive"

• A resource used in technology

• A payment for a good or services

• Something that deters a person to do something

• A thing that encourages a person to do something

What is an entrepreneur?

• Someone who is employed

• Someone who doesn't work

• Someone who has set up their own business

• Someone who works from home

Someone wanting to buy a computer must consider the other purchases that could be made with the money spent on the computer. Which economic factor has this individual considered before making this purchase?

• Scarcity

• Opportunity Cost

• Supply and Demand

• Production- Possibilities

Scarcity is a basic economic problem because

• Resources are limited

• Governments limit production

• Opportunity costs limit demand

• People have trouble making choices

In a free market society, the answer to the question about how much to produce is determined by

• Census data

• profit projections

• consumer demand

• government quotes

Which resource would be considered the factor of production called land?

• Coal

• Factory

• Money

• Tractor

In comparison to the U.S free enterprise system the economy of communist China is characterized by a lack of

• Competition

• Well-paying jobs

• Trade incentives

• Manufacturing industries

Economic systems that are characterized by government control of the economic decision making process are considered to be

• Efficient

• Communist

• Free Market

• Choice based