Unit 1: Basic Economics Review

How can you increase your human capital?

• I can get more training and certifications that employers are looking for

• I can ask my employer for a pay raise

• I can quit my job and find another job that pays less

Which of the following is an example of mass production?

• Chic-Fil-A makes all of their chicken nuggets by hand, but diners have to wait longer for their order

• McDonald's only has 4 shapes of Chicken McNuggets to make producing them in a factory much quicker

• Subway has one employee who cuts bread, another employee who adds veggies and meat, and another employee who rings customers up at the cash register

A city has decided to build a new park. What is the opportunity cost of the new park?

• The time it will take workers to build the park, pay for their health insurance and wages, the loss of fun experience by children when the park is closed for renovations

• There is not opportunity cost because city parks are a public good from which everyone benefits

• Anything the city has given up in exchange for building the park, such as other things that could build on the land or other ways to spend the money

What is the quantity demanded with the price is $4?

• 6

• 12

• 13

• 16

What is the price when the quantity supplied is 12?

• $4

• $8

• $9

• $12

Which of the following is true about the graph?

• There has been an increase in demand

• There has been a decrease in demand

• There has been an increase in supply

• There has been a decrease in supply

Which situation is represented by the line where the price is $14?

• shortage

• surplus

• equilibrium

• scarcity

What is the amount of the SHORTAGE at the given price represented in the graph (the difference between the quantity demanded and the quantity supplied)?

• 3

• 4

• 15

• 11

• 14

What is the amount of the SURPLUS at the given price represented in the graph (the difference between the quantity demanded and the quantity supplied)?

• 3

• 4

• 15

• 11

• 14

According to Mrs. Presnell's preferences for pizza described in the prompt, what does she consider Domino's pizza and Papa Johns pizza to be?

• substitute goods

• complementary goods

• capital goods

• services