basic fundamentals practice questions. basic fundamentals question 1 which describes scarcity? a a...
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BASIC FUNDAMENTALS PRACTICE QUESTIONS
BASIC FUNDAMENTALS QUESTION 1
• Which describes scarcity?• A A condition where supply exceeds demand.• B The situation that exists when there is
temporarily a shortage of a good or service.• C Unlimited wants exceeding limited
resources.• D An unlimited demand for goods and
services.
BASIC FUNDAMENTALS QUESTION 1
Which describes scarcity?A A condition where supply exceeds demand.B The situation that exists when there is temporarily a shortage of a good or service.C Unlimited wants exceeding limited resources.D An unlimited demand for goods and services.
BASIC FUNDAMENTALS QUESTION 2
• In the production of chocolate chip cookies, which represents the factor of capital?• A the dough used to bake the cookies• B the oven used to bake the cookies• C the worker who decorates the cookies• D the retailer who sells the cookies
BASIC FUNDAMENTALS QUESTION 2
In the production of chocolate chip cookies, which represents the factor of capital?A the dough used to bake the cookiesB the oven used to bake the cookiesC the worker who decorates the cookiesD the retailer who sells the cookies
BASIC FUNDAMENTALS QUESTION 3
• Which is a human resource that Ms. Johnson could use for her art gallery?• A Light fixtures to help display the artwork• B A security system to protect the artwork• C Knowledge of trends in modern art• D A series of paintings by a prominent local
artist
BASIC FUNDAMENTALS QUESTION 3
Which is a human resource that Ms. Johnson could use for her art gallery?A Light fixtures to help display the artworkB A security system to protect the artworkC Knowledge of trends in modern artD A series of paintings by a prominent local artist
BASIC FUNDAMENTALS QUESTION 4
• Opportunity cost is best described as the• A sum of all production costs• B most expensive resource used in
production• C value of the best alternative forgone when a
choice is made• D monetary value of all alternatives forgone
when a choice is made•
BASIC FUNDAMENTALS QUESTION 4
Opportunity cost is best described as theA sum of all production costsB most expensive resource used in productionC value of the best alternative forgone when a choice is madeD monetary value of all alternatives forgone when a choice is made
BASIC FUNDAMENTALS QUESTION 5
• Based on the PPF, which is true about countries A and B?
• A Country A has fewer resources to make fish, but more resources to make coconuts
• B Country B has fewer resources to make fish, but more resources to make coconuts
• C Country A has more total resources.
• D Country B has more total resources.
BASIC FUNDAMENTALS QUESTION 5
Based on the PPF, which is true about countries A and B?A Country A has fewer resources to make fish, but more resources to make coconutsB Country B has fewer resources to make fish, but more resources to make coconutsC Country A has more total resources.D Country B has more total resources.
BASIC FUNDAMENTALS QUESTION 6
• Which statement is true about the graphic above?
• A Moving from point X to point Y incurs an opportunity cost of guns.
• B At point X, this country is producing more butter than guns.
• C Moving from point X to point Y incurs and opportunity cost of butter.
• D This country does not have to give up any guns to produce more butter.
BASIC FUNDAMENTALS QUESTION 6
Which statement is true about the graphic above?A Moving from point X to point Y incurs an opportunity cost of guns.B At point X, this country is producing more butter than guns.C Moving from point X to point Y incurs and opportunity cost of butter.D This country does not have to give up any guns to produce more butter.
BASIC FUNDAMENTALS QUESTION 7
• If this country decides to produce 40 pounds of cheese, what is their opportunity cost?
• A 20 pounds of cheese
• B 6 gallons of milk• C 8 gallons of milk• D 40 pounds of
cheese
BASIC FUNDAMENTALS QUESTION 7
If this country decides to produce 40 pounds of cheese, what is their opportunity cost?A 20 pounds of cheeseB 6 gallons of milkC 8 gallons of milkD 40 pounds of cheese
BASIC FUNDAMENTALS QUESTION 8
• Which of the following is NOT one of the three basic economic questions that must be answered in an economy?• A What to produce• B When to produce• C How to produce• D For Whom to produce
BASIC FUNDAMENTALS QUESTION 8
Which of the following is NOT one of the three basic economic questions that must be answered in an economy?A What to produceB When to produceC How to produceD For Whom to produce
BASIC FUNDAMENTALS QUESTION 9
• Competition and free enterprise are most common in which type of economic system?• A traditional• B market• C communist• D planned
BASIC FUNDAMENTALS QUESTION 9
Competition and free enterprise are most common in which type of economic system?A traditionalB marketC communistD planned
BASIC FUNDAMENTALS QUESTION 10
• Which type of economic system is MOST likely to experience high amounts of government regulation and low amounts or private ownership?• A market• B command• C traditional• D international
BASIC FUNDAMENTALS QUESTION 10
Which type of economic system is MOST likely to experience high amounts of government regulation and low amounts or private ownership?A marketB commandC traditionalD international
BASIC FUNDAMENTALS QUESTION 11
• Because they have greater government involvement, command economies tend to be better than market economies at meeting which economic goal?• A freedom• B incentives• C efficiency• D equity
BASIC FUNDAMENTALS QUESTION 11
Because they have greater government involvement, command economies tend to be better than market economies at meeting which economic goal?A freedomB incentivesC efficiencyD equity