Which of these is an example of a capital resource?
(1 point)
Responses
workers
workers
iron ore
iron ore
entrepreneurs
entrepreneurs
computers
computers
computers
How does scarcity affect customers?
(1 point)
Responses
Limited money forces consumers to make choices.
Limited money forces consumers to make choices.
Limited time prevents customers from making decisions.
Limited time prevents customers from making decisions.
Limited numbers of producers force customers to be loyal.
Limited numbers of producers force customers to be loyal.
Limited wants and needs limit customers to small purchases.
Limited money forces consumers to make choices.
A fast-food chain makes the decision to rebrand itself as a mid-range adult café instead of a cheap kid-friendly restaurant. This change will involve using higher-quality ingredients and renovating to remove children’s playgrounds.
Question
Use the passage to answer the question.
What is the opportunity cost in the scenario above?
(1 point)
Responses
one-time expense of renovating restaurants
one-time expense of renovating restaurants
ongoing expense of high-quality ingredients
ongoing expense of high-quality ingredients
money that is expected to be provided by new adult customers
money that is expected to be provided by new adult customers
money that could have been made from families with young children
money that could have been made from families with young children
money that could have been made from families with young children
Jake decides to spend time over the weekend doing extra football practice. What is the most likely short-term consequence of his decision?
(1 point)
Responses
His football skills will get a little better.
His football skills will get a little better.
He will become a professional football player.
He will become a professional football player.
His coach will ask him to quit the team.
His coach will ask him to quit the team.
He will earn a football scholarship.
His football skills will get a little better.
Maria goes on a shopping trip to get ready for her vacation. She loads her cart with a bathing suit for $15.00, a sun hat for $8.00, magazines for $8.00, and a beach towel for $7.00. When she gets to the register, she realizes she only has $20.00 in her pocket.
Question
Use the passage to answer the question.
If Maria decides to purchase the sun hat and towel, what is the opportunity cost of her purchase? Select all that apply.
(1 point)
Responses
the sun hat
the sun hat
the towel
the towel
the magazines
the magazines
the bathing suit
the magazines
the bathing suit
Two grocery stores are located in the downtown area of a small city. The first offers excellent prices for buying large bulk quantities. The second does not have bulk offers, but offers lower prices on single items.
Question
Use the passage to answer the question.
Why would both these stores attract a good number of customers?
(1 point)
Responses
Customers value different types of deals.
Customers value different types of deals.
Customers have different brand loyalties.
Customers have different brand loyalties.
Customers patronize both stores to maintain competition.
Customers patronize both stores to maintain competition.
Customers do not have the information to choose the best option.
Customers do not have the information to choose the best option.
Customers value different types of deals.
Which situation is more likely to occur in a market economy than a command economy?
(1 point)
Responses
People line up for cheap but scarce products.
People line up for cheap but scarce products.
A student is guaranteed a job out of college.
A student is guaranteed a job out of college.
An inventor designs and produces a new type of car.
An inventor designs and produces a new type of car.
A committee chooses which farms should receive new tractors.
An inventor designs and produces a new type of car.
How does the use of plastic to produce bicycle helmets affect other plastic-using industries?
(1 point)
Responses
It decreases the prices offered by other industries.
It decreases the prices offered by other industries.
It increases the demand for products of other industries.
It increases the demand for products of other industries.
It increases the capital available to other industries.
It increases the capital available to other industries.
It decreases the amount of resources available to other industries.
It increases the demand for products of other industries.
Many employees of a local restaurant suddenly quit and seek other opportunities. What is the most likely explanation for the large number of employees quitting?
(1 point)
Responses
a developing price war
a developing price war
a protest action by the union
a protest action by the union
decrease in positive incentives to work
decrease in positive incentives to work
decrease of negative incentives to being unemployed
decrease in positive incentives to work
Which of these is an example of a monetary incentive?
(1 point)
Responses
having fun walking a dog
having fun walking a dog
making friends on a sports team
making friends on a sports team
learning a new skill by studying it
learning a new skill by studying it
earning an allowance for doing chores
earning an allowance for doing chores
Which of the following goods or services is an import in the United States?
(1 point)
Responses
apples grown on a farm in Vermont
apples grown on a farm in Vermont
kitchenware purchased online from China
kitchenware purchased online from China
software created in California and used in Chicago
software created in California and used in Chicago
technical service to a customer in the Philippines
kitchenware purchased online from China
Which of the following laws is considered a trade barrier?
(1 point)
Responses
A company that produces furniture is shut down
A company that produces furniture is shut down
federal aid given to unemployed workers from a factory
federal aid given to unemployed workers from a factory
paying money to an industry to encourage it to make goods in the country
paying money to an industry to encourage it to make goods in the country
consumers deciding to purchase only locally made goods
paying money to an industry to encourage it to make goods in the country
What is one potential negative consequence associated with free trade?
(1 point)
Responses
Import and export taxes are high under free trade.
Import and export taxes are high under free trade.
Buyers and sellers can no longer make price decisions.
Buyers and sellers can no longer make price decisions.
Countries that practice free trade have high unemployment.
Countries that practice free trade have high unemployment.
People in certain industries earn lower wages or sell fewer products.
People in certain industries earn lower wages or sell fewer products.
Which policy would be in the best interests of consumers?
(1 point)
Responses
increasing tariffs
increasing tariffs
decreasing minimum wage
decreasing minimum wage
breaking up large companies to increase competition
breaking up large companies to increase competition
changing loan interest rates to encourage saving rather than borrowing
changing loan interest rates to encourage saving rather than borrowing
breaking up large companies to increase competition
Which statement best explains why division of labor increases labor productivity?
(1 point)
Responses
Employers can pay workers more money when they get more done.
Employers can pay workers more money when they get more done.
Employers must fire some of their workers so fewer people have to get the work done.
Employers must fire some of their workers so fewer people have to get the work done.
Workers learn to do their jobs more quickly when they repeat the same tasks.
Workers learn to do their jobs more quickly when they repeat the same tasks.
Workers try to work more quickly because their jobs are more boring.
Workers learn to do their jobs more quickly when they repeat the same tasks.
A country has an economic boom and can afford to increase imports from a second country. What is likely to happen in the second country?
(1 point)
Responses
a recession
a recession
an economic boom
an economic boom
a depression
a depression
increased taxes
an economic boom
The United States signs a free trade agreement with another country that has dramatically different resources. How would this trade treaty affect the United States?
(1 point)
Responses
Businesses will most likely not offer a variety of products.
Businesses will most likely not offer a variety of products.
Consumers will face higher prices as trade deficits increase.
Consumers will face higher prices as trade deficits increase.
Industries will increasingly focus on using interdependence.
Industries will increasingly focus on using interdependence.
Producers will be put out of business as more interesting products enter the market.
Industries will increasingly focus on using interdependence.
How would supply shift caused by lower costs of production affect price and quantity?
(1 point)
Responses
higher price, lower quantity
higher price, lower quantity
lower price, lower quantity
lower price, lower quantity
lower price, higher quantity
lower price, higher quantity
higher price, higher quantity
lower price, higher quantity
What does a relative price compare?
(1 point)
Responses
the price different sellers ask for the same good
the price different sellers ask for the same good
the price that buyers pay to the price that sellers ask
the price that buyers pay to the price that sellers ask
the price of one good or service to another
the price of one good or service to another
the price that a seller wants to pay to the price that the seller actually pays
the price of one good or service to another
When are equilibrium prices achieved?
(1 point)
Responses
when demand is greater than supply
when demand is greater than supply
when sellers break even
when sellers break even
when supply equals demand
when supply equals demand
when supply is greater than demand
when supply equals demand
A company introduces a printer that does not require ink cartridges. As a result, the price of printers that use ink drops. What is another likely outcome?
(1 point)
Responses
The price of ink cartridges goes up.
The price of ink cartridges goes up.
The price of ink cartridges drops.
The price of ink cartridges drops.
The demand for ink cartridges goes up.
The demand for ink cartridges goes up.
The supply of ink cartridges drops.
The demand for ink cartridges goes up.
According to the law of demand, what role do low prices serve for buyers?
(1 point)
Responses
supply
supply
reward
reward
substitute
substitute
penalty
penalty
reward
Which of these is an example of price competition?
(1 point)
Responses
a new advertising campaign
a new advertising campaign
a loyalty rewards program
a loyalty rewards program
a special holiday sale
a special holiday sale
a customer satisfaction survey
a special holiday sale
Malik cuts lawns in his neighborhood to earn some extra money. His neighbors agree to pay him $15.00 to take care of their lawns for the week, and at that price, Malik is willing to set aside enough time to take care of four lawns. After a few heavy rainstorms that cause the grass to grow more quickly, several of Malik’s other neighbors offer him $20.00 to cut their lawns.
Question
Use the passage to answer the question.
What effect could this price increase have on Malik’s lawn-cutting business?
(1 point)
Responses
Malik will not need to cut lawns anymore.
Malik will not need to cut lawns anymore.
Malik will be willing to charge more people less money.
Malik will be willing to charge more people less money.
Malik will cut lawns every day instead of just once a week.
Malik will cut lawns every day instead of just once a week.
Malik will be willing to take care of more lawns that week at the higher price.
Malik will be willing to take care of more lawns that week at the higher price.
Which of the following is a characteristic of a market economy?
(1 point)
Responses
weak property rights
weak property rights
limited role of government
limited role of government
no consumer choice
no consumer choice
lack of competition
lack of competition
limited role of government
Labor unions are most closely tied to which type of productive resource?
(1 point)
Responses
entrepreneurship
entrepreneurship
natural resources
natural resources
capital resources
capital resources
human resources
human resources
How do banks most help grow the economy?
(1 point)
Responses
They provide loans for consumers and investors.
They provide loans for consumers and investors.
They are difficult to steal from.
They are difficult to steal from.
They are backed by the federal government.
They are backed by the federal government.
They offer both checking and savings accounts.
They provide loans for consumers and investors.
Sam discovers that someone has used his bank card to charge hundreds of dollars at a sports store. Which risk of using financial institutions is he a victim of?
(1 point)
Responses
locked-in funds
locked-in funds
missed opportunities
missed opportunities
identity theft
identity theft
interest payments