12AB3 - Edmentum Econ - Unit 2 - Unit Review

Which factor of production includes all of the time and effort that humans put into producing goods and services?

• human capital

• labor

• physical capital

• entrepreneurship

Which of the following would likely happen if a country received more foreign investment?

• a rightward shift in the PPC (economic shrinkage)

• a rightward shift in the PPC (economic growth)

• a leftward shift in the PPC (economic shrinkage)

• a leftward shift in the PPC (economic growth)

Which of the following are considered advantages of market economies for producers / business owners?

• low taxation

• private property rights

• international competition

• minimal government intervention

Match the definition to the correct term: the control that buyer preference exercises over the production of goods and services

• profit incentive

• property rights

• international competition

• consumer sovereignty

When looking at a PPC chart, where can you find points of ALLOCATIVE EFFICIENCY? (don't overthink it...you can answer in three words)

Technical jobs required skills and employees are rewarded for having those skills with a higher (a)   . (one word - four letters)

When considering whether or not to purchase a new truck for his shipping business, Mark calculates the cost of the vehicle, the cost of maintenance, and the cost of the loan he would need in order to make the purchase. Mark is considering the ________________________.

• marginal benefits

• total cost of ownership

• cost benefit analysis

• opportunity cost

Which of the following business structures have unlimited liability?

• sole proprietorship

• corporation

• partnerships

• limited liability corporation

Which of the following would likely cause a leftward shift of a country's PPC?

• a famine (no food)

• improvements in technology

• increased foreign investment

• mass casualties

• a global pandemic

True or False: GDP is the total monetary value of all the finished goods and services produced in a country in a given period

• True

• False