Unit 2 - Economic Concepts Final Assessment Review

Which of the following types of utility enhances value by creating more useful or desirable products out of raw materials or separate parts?

• possession

• time

• form

• information

Which of the following is NOT one of the basic economic questions listed in the presentation?

• What goods and services do we produce?

• How do we produce those goods and services?

• When will we produce those goods and services?

• Who should benefit from the goods and services produced?

When companies are understaffed, employees can become overworked, cause a hostile work environment, and increase the time of production.

• True

• False

An economic system in which there is increased government involvement where the goal is to keep prices low and provide jobs for everyone is known as which of the following?

• capitalism

• socialism

• communism

• free enterprise

Unprofitable firms negatively affect the economy by increasing the job market and increasing salaries and benefits.

• True

• False

When describing supply and demand, which of the following defines when a product is demanded in larger quantities than is produced?

• surplus

• equilibrium

• demand

• shortage

Protection for business, individuals and resources are NOT provided by which of the following types of government departmental regulation?

• FDA

• OSHA

• EEOC

• NHAC

Gross National Income includes all of the income earned by a country's residents and businesses including those earned abroad.

• True

• False

A country possessing unique resources or capabilities to allow the lowest cost of production for a product is known as which of the following?

• absolute advantage

• comparative advantage

Current events can impact personal financial decisions, particularly through the stock market.

• True

• False