9 Weeks retake MP3 Econ

Which of these most directly contributes to the problem of economic scarcity?

• People have unlimited wants for goods and services.

• People must earn money to provide for their families.

• People have to pay taxes to governments for services.

• People must take risks to create and improve technology.

How does scarcity of resources affect the nations of the world?

• It causes nations to develop tax laws.

• It causes nations to trade with one another.

• It decreases the need for nations to develop technology.

• It decreases the need for nations to work together peacefully.

Which term is used to describe a company’s ability to produce a good at a lower opportunity cost than another company?

• Trade imbalance

• Absolute advantage

• Non-structural barrier

• Comparative advantage

Which phrase best completes the list below? Factors of Production • Labor • Natural resources • Capital • ?

• Consumer demand

• Entrepreneurship

• Technology

• Government regulation

Available resources will never be enough to satisfy all human needs and wants. This basic problem of economics leads to which outcome?

• Inflation expands purchasing power.

• Workers earn more through overtime pay.

• Scarcity requires people to make choices.

• Personal expenses increase on an annual basis.

Which TWO facts are most related to foreign oil dependence? Choose TWO answers.

• Fact 1: Scarcity of natural resources has led Japan to look for resources overseas.

• Fact 2: In Australia, population density is affected by a large desert.

• Fact 3: Plant materials are often used in fuels in the United States.

• Fact 4: A major export of Ghana is gold.

Suzie works at the mall, along with three of her friends, where they all earn money they didn't have before. How does this most likely affect the circular-flow model?

• Business savings would increase.

• Household consumption of goods would increase.

• Household income would decrease.

• Labor costs would decrease.

An example of a non-price determinant of a decrease in supply of wheat for bread would be

• the introduction of new fertilizers that increase wheat crop yields.

• a drought in the farming states of the Midwest.

• an increase in the cost of bread on store shelves.

According to the law of supply, what caused the change indicated in this table?

• The price of pencils increased between 2008 and 2011.

• Shipping rates increased between 2008 and 2011.

• The price of toothpicks increased between 2008 and 2011.

• Electricity costs increased between 2008 and 2011.

Which TWO factors can cause a shift of the demand curve? Choose TWO answers.

• Changes in consumer income

• Government regulation

• Improved manufacturing efficiency

• Investment capital