PPC and Economic Systems Test

Which Point on the Graph is unattainable with current resources?

• A

• Y

• B

• X

Canada has private business and private property. However the government controls the medical industry. What kind of economy does Canada have?

• Command economy
• Traditional economy
• Capitalist economy
• Mixed economy

Voluntary exchange is the idea the buyer and seller agree to do business together

• Voluntary exchange is the mutual agreement between buyer and seller where there is a mutual benefit for both.

• Voluntary exchange is a forced agreement between buyer and seller.
• Voluntary exchange occurs when a buyer is obligated to purchase from a seller.
• Voluntary exchange is the process of a seller dictating terms to a buyer.

This type of economy has elements of a market and command economy

• Mixed economy
• Planned economy
• Barter economy
• Traditional economy

Which of the following would macroeconomics study?

• A general rise in prices

• Research on local business strategies
• Analysis of specific company profits
• The study of individual consumer behavior

If 50 biscuits are being produced, how many units of cheese will be procuced?

• 16 Units of cheese

• 100 units of cheese
• No cheese will be produced
• 25 units of cheese

What is the opportunity cost if you go from making 16 units of cheese to making 26 units of cheese

• 50 units of biscuits

• 30 units of biscuits

• 20 units of biscuits

• There is no opportunity cost

You buy a new coat for $100. What is your opportunity cost?

• The total cost of the coat including taxes.
• The amount of money spent on other clothing items.
• The price of the coat after a discount.
• The value of the next best alternative you could have purchased with $100.

Which statements explain the purpose of using a production possibilities curve?

• illustrates trade-offs made in am economy.

• indicates the allocatively efficient point.

• indicates the productively efficient points

• all of these

Measurement of how much we make per unit of input

• Efficiency
• Output Rate
• Production Volume
• Productivity