Introduction to Economics Quiz

The opportunity cost of a decision can be examined by using a

• Graph of increasing costs

• Global trade-off grid

• Production possibilities graph

• Factors of production chart

What does the Temporary assistance for Needy Families program provide

• Cash to all workers injured on the job

• Compensation to all those who lose their job

• Cash to the states to help run their welfare program

• Retirement income for the elderly.

What best describes the role of government in a free enterprise system

• Control business activities

• Decide what companies will be formed and then allowed managers to run them

• Require companies disclose information to consumers so they can make informed decisions

• Allow individuals to operate their businesses in ways they think will maximize their profits

Which of the following is a private organization that attempts to influence public officials to ACTi or vote in ways that will benefit the group's members?

• Free enterprise group

• Interest group

• Market research group

• Public policy group

Which of the following is NOT an example of a public good?

• Municipal library

• Shopping mall

• National parks

• Highways

A country's production possibilities increase because the available workers become more skilled at using a computer. This is an example of growth caused by

• Production opportunity

• Technology

• Physical capital

• Global resources

All of the following are types of decisions that can be made at the margin EXCEPT

• Whether or not to go on vacation

• Where to grow beans or corn on a large farm

• Whether or not to hire 100 workers

• Whether to leave early in the mornings or late in the day for a trip

What effect does new technology usually have on an economy?

• It makes the economy weaker and less efficient

• It reduces available jobs

• It slows an economy stronger and more efficient

• It makes the economy stronger and more efficient.

A efficient economy is one that

• Makes the least costly use of its resources

• Has very few people who do not work for a living

• Makes the best use of all its goods and service

• Uses its resources to make the most goods and services

What is the struggle among various producers for the consumer's business called?

• Socialism

• Incentive

• Regulation

• Competition