Unit 1 Econ assessment

In the production of loaves of bread, which best represents the factor of capital?

• The flour used in the dough

• The retailer who sells the bread

• The oven used to bake the bread

• The worker who kneaded the dough

If a certain combination of goods lies inside a country’s production possibilities curve,

• more resources are needed to attain that combination of goods.

• that combination is an inefficient use of resources.

• this economy is benefiting from trade and specialization.

• resources are being used efficiently.

Microeconomics focuses on

• the economic impact of implementing fiscal and monetary policy.

• the big picture, looking at the economy as a whole.

• international trade and finance.

• small economic units, such as individuals, firms, and markets.

Which statement below best describes why the production possibilities curve bows outward?

• One country can always produce products more efficiently than others.

• It is easier to shift productive resources as production shifts from one industry to another.

• The opportunity cost grows as productive resources are shifted from one industry to another.

• The opportunity cost remains the same as production shifts from one industry to another.

Increased investment would likely have what effect on production possibilities?

• A country’s production possibilities would shift inward

• It is impossible to tell what impact investment would have on a country’s production possibilities.

• A country’s production possibilities would shift outward

• No change to a country’s production possibilities

Which term below is a command economy most commonly associated with?

• Capitalism

• Government regulation

• Competition

• Private property

Which of the following best describes marginal benefit?

• The benefit you get when you sell a good or service

• The additional expenses or effort you expend when performing on more unit of action

• When scarce productive resources meet the needs of consumers

• The additional benefit you receive from performing one more unit of action

On the graph, which combination represent(s) an efficient use of resources?

• Only point A

• Only point B

• Point B and C

• Only point D

The concept of the invisible hand refers to which of the following?

• Congress passing a new law

• Government regulation

• Individuals seeking their own self-interests

• The Federal Reserve adjusting interest rates

Freedom of choice and competition are most commonly associated with which type of economic system?

• Command

• Market

• Traditional

• Communist