Topic 1 Test Review

the factors of prodution

• Scarcity
• choice
• opportunity cost
• resources

what is given up when a choice is made

• Scarcity
• choice
• opportunity cost
• resources

The inability to satisfy all wants at the same time

• Scarcity
• choice
• opportunity cost
• resources

Ms. Jackson went out on black Friday hoping to score a new flat-screen tv at the local Walmart supercenter. She was sorely disappointed when she realized that she was the 100th person in line and Walmart only guaranteed to have 4 tv’s in stock. What basic concept does this illustrate?

• scarcity

• supply

• demand

• incentives

• price

Ms. Lopes' Focus has finally bit the dust. Thus, she went down to Ronnie’s Auto Shop. She has narrowed her choices down to a Prius or a Volt but can only afford to buy one. She pulls out of the parking lot in a Volt. What is the opportunity cost of Ms. Lopes buying the Volt?

• opportunity cost

• choice

• Volt

• Prius

• Price

If you decide to study an extra hour tonight, what would be the economic outcome?

• The marginal cost of studying an extra hour exceeds its marginal benefit.

• The marginal benefit of studying an extra hour exceeds its marginal cost.

• Studying harder will always improve your test scores.

• You will most likely get a lower than expected grade on your last exam.

Answer the question on the basis of the data given in the following production possibilities table. According to the data in the table, what is required as indicated by increasing production of capital goods?

• The increase in sacrifices of consumer goods.

• The decrease in sacrifices of consumer goods.

• There are no sacrifices of consumer goods.

• The constant sacrifices of consumer goods.

What is best illustrated by the negative slope of the production possibilities curve?

• Some resources are always unemployed.

• Opportunity costs are constant.

• When resources are fully employed, an economy can produce more of one thing only by producing less of something else.

• Businesses can sell more goods when their prices are low.

Refer to the production possibilities diagram for the following Question.

Production of which of the points in the diagram is currently unattainable given the economy's resources?

• Point A

• Point B

• Point C

• Point D

Margaret decides to stay home and study for her exam rather than going out to a movie with her friends. Which of the following best reflects her dilemma?

• The economic perspective

• Marginal analysis

• Opportunity cost

• Allocative efficiency