Checking to see if I got these right. The ones I selected are marked with an *
1. The price paid for the use of capital is called (Points : 1)
mortgage payment.
rent.
profit.
wages.
*interest.
2. Capital consists of (Points : 1)
stocks and bonds.
the assets of the government.
*aids to production created by humans.
the assets of a firm.
the assets of upper-income groups.
3. When the government redistributes income, it is answering a basic economic question. Which one? (Points : 1)
What?
*For whom?
How?
Why?
When?
4. The basic economic problem is (Points : 1)
predicting human behavior.
harnessing self-interest to serve the public interest.
building realistic models.
*balancing supply and demand.
scarce resources, unlimited wants.
5. The measure of the cost of a particular good in terms of what is given up to produce that good is called (Points : 1)
a necessary cost.
a dollar cost.
a fixed cost.
an explicit cost.
*an opportunity cost.
6. Demand relates the various amounts that consumers are willing to buy over a specified time period (Points : 1)
at various prices.
as their tastes change.
as their incomes change.
*when prices increase.
7. If beans are inferior goods, a decrease in income will (Points : 1)
increase the production of beans.
shift the demand curve for beans to the left.
shift the demand curve for beans to the right.
rotate the supply curve in a clockwise manner.
*cause beans to sell at a lower price.
8. If left alone, a market-directed economy will (Points : 1)
*avoid the production problems encountered in command economies.
provide the correct economic choice in many but not all cases.
invariably provide the correct economic choices.
protect consumers from monopoly.
disintegrate.
9. In a market system, property rights are enforced by (Points : 1)
central planners.
business and individuals, but not government.
*government.
business only.
individuals only.
10. A production possibilities curve shows (Points : 1)
*that in order to acquire more of one good, some of the alternative good must be given up.
that any amount of goods could be produced by society if people worked harder.
that in order to acquire more of one good, none of the alternative good must be given up.
various combinations of guns, bullets, bread, and butter that can be produced under conditions of 6 percent unemployment
1. The correct answer is *interest. To determine the price paid for the use of capital, you need to consider the concept of interest, which represents the cost of borrowing money for capital.
2. The correct answer is *aids to production created by humans. Capital refers to the assets or resources that are used in the production process to generate goods and services. Examples of capital include machinery, equipment, buildings, and technology.
3. The correct answer is *For whom? When the government redistributes income, it is addressing the question of who should receive the income and benefit from the resources and wealth of society.
4. The correct answer is *scarce resources, unlimited wants. The basic economic problem refers to the fundamental issue of scarcity, which arises from the limited availability of resources compared to the unlimited wants and needs of individuals and society.
5. The correct answer is *an opportunity cost. The concept of opportunity cost measures the value of the next best alternative that is foregone when choosing one option over another. It represents the cost of using resources for a particular activity or good rather than using them for alternative activities or goods.
6. The correct answer is *at various prices. Demand represents the quantity of a good or service that consumers are willing and able to purchase at different prices. It shows the relationship between price and quantity demanded.
7. The correct answer is *shift the demand curve for beans to the left. Inferior goods are those for which demand decreases as income increases. Therefore, a decrease in income will cause a shift of the demand curve for beans to the left, indicating a lower demand for beans.
8. The correct answer is *avoid the production problems encountered in command economies. A market-directed economy, also known as a market economy or free market economy, allows individuals and businesses to make economic decisions based on market forces such as supply and demand. It is expected to be more efficient and avoid the production problems commonly seen in command economies, where central planning and government control dominate.
9. The correct answer is *government. In a market system, property rights are generally enforced and protected by the government. These rights include ownership and control over property, as well as the ability to use, transfer, and exclude others from using the property.
10. The correct answer is *that in order to acquire more of one good, some of the alternative good must be given up. A production possibilities curve (PPC) illustrates the different combinations of goods or services that can be produced given a fixed amount of resources and technology. It shows the trade-offs and opportunity costs involved in producing more of one good at the expense of another.