Chapter 1 Test, Form A- What Is Economics?

Each worker learns one task very well. Scarcity Nondurable goods Gross domestic product Capital good Production possibilities curve Consumerism Specialization Economic interdependence Standard of living Factor market

Quality of life. Scarcity Nondurable goods Gross domestic product Capital good Production possibilities curve Consumerism Specialization Economic interdependence Standard of living Factor market

Represents the range of production possibilities. Scarcity Nondurable goods Gross domestic product Capital good Production possibilities curve Consumerism Specialization Economic interdependence Standard of living Factor market

Where all the factors of production are bought and sold. Scarcity Nondurable goods Gross domestic product Capital good Production possibilities curve Consumerism Specialization Economic interdependence Standard of living Factor market

A fundamental problem in every society. Scarcity Nondurable goods Gross domestic product Capital good Production possibilities curve Consumerism Specialization Economic interdependence Standard of living Factor market

Measures a country's output and economic health. Scarcity Nondurable goods Gross domestic product Capital good Production possibilities curve Consumerism Specialization Economic interdependence Standard of living Factor market

Manufactured goods needed to produce other goods and services. Scarcity Nondurable goods Gross domestic product Capital good Production possibilities curve Consumerism Specialization Economic interdependence Standard of living Factor market

Food is an example of one. Scarcity Nondurable goods Gross domestic product Capital good Production possibilities curve Consumerism Specialization Economic interdependence Standard of living Factor market

Reliance on others to produce goods and services we need. Scarcity Nondurable goods Gross domestic product Capital good Production possibilities curve Consumerism Specialization Economic interdependence Standard of living Factor market

Movement that promoted the rights of buyers. Scarcity Nondurable goods Gross domestic product Capital good Production possibilities curve Consumerism Specialization Economic interdependence Standard of living Factor market

Paradox of value refers to the. High value of an essential item and the low value of a nonessential item High value of a nonessential item and the low value of an essential item Contradiction of what consumers want and what they need Contradiction between gross domestic product and market value

A nation's wealth is determined by its. Accumulation of all tangible and intangible resources Natural resources Accumulation of all tangible products Product possibilities frontier

The most comprehensive measure of a nation's wealth is provided by its. Gross domestic product TINSTAAFL rating Product possibilities curve Capital Goods

Which type of the following statements best describe the purpose of the production possibilities curve? It predicts the future production of a nation It identifies trends in production It shows which products are most profitable It identifies all possible combinations of goods and services an economy can produce

Which of the following descriptions best explains the meaning of opportunity cost? The initial cost of starting a new business The cost of business failure The cost of choosing one alternative over another The risk associated with producing a new item

Consumers waiting in long lines for a new product is an example of. Consumerism Consumer rights Consumer responsibilities Scarcity

When a nation's total output increases over time, the nation is experiencing. A decrease in gross domestic product Economic growth Economic interdependence An expansion of the possibilities curve

The efficient use of scarce resources leads to an increase in. Productivity Investment Scarcity Capital

When a business needs to decide whether a certain action is worth the cost, the most helpful analysis would be a(n). Production possibility curve Cost-benefit analysis Economic model Needs assessment

The study of economics involves. Explaining how people deal with scarcity Studying how things are made, bought, sold, and used Explaining how incomes are earned and how jobs are created All of the above