AnswersEconomicsIntroduction to Economics

Introduction to Economics — Test Answers

25 verified answers
1
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The fact that Samira may miss out on a scholarship opportunity by staying on the freshman team illustrates

A
minor consequences.
B
a cause.
C
a tradeoff.
D
unexpected risk.
2
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In what time period did hydroelectric power usage reach its peak?

A
1970–1980
B
1980–1990
C
1990–2000
D
2000–2010
3

What is one way that technology can improve the distribution of goods?

A
Businesses can hire factory workers across the world.
B
Container ships can transport a number of goods at once.
C
Workers can take Internet classes to gain new skills.
D
Automation can create goods more cheaply and easily.
4

One method for studying opportunity cost is to think in terms of

A
risk and ability.
B
tradeoffs.
C
trial and error.
D
pros and cons.
5

One of the main questions of economics involves deciding upon the method for

A
distributing goods and services.
B
enhancing goods and services.
C
creating goods and services.
D
pricing goods and services.
6

What is the best definition of technology?

A
Technology is hiring workers from all over the world to manufacture goods.
B
Technology is using fewer resources to manufacture goods more efficiently.
C
Technology is applying scientific knowledge to find answers and fix problems.
D
Technology is replacing human workers with mechanical or electronic devices.
7

What is the best definition of ownership?

A
Ownership is the right to purchase goods alone.
B
Ownership is the right to possess land alone.
C
Ownership is the right to purchase land or goods.
D
Ownership is the right to possess land or goods.
8

What are some ways to address unemployment in a market economy? Choose three correct answers.

A
raising more taxes
B
lowering restrictions
C
increasing regulation
D
creating new projects
E
promoting hiring
9

Which of the illustrates an opportunity cost?

A
Amir only has time to study or to play basketball.
B
James has enough money to buy some socks and a book.
C
Lydia does not have enough money to buy a new shirt.
D
Alyssa does not have enough time to study for her test.
10

What kind of economy uses a free-enterprise system?

A
a market economy
B
a closed economy
C
a traditional economy
D
a command economy
11

Which resource is renewable?

A
coal
B
gold
C
minerals
D
lumber
12

One of the three main questions of economics addresses who should

A
market goods and services.
B
distribute goods and services.
C
produce goods and services.
D
receive goods and services.
13

Which of the could be considered both a renewable resource and a nonrenewable resource?

A
sea water
B
wheat crop
C
solar energy
D
iron ore
14

What is the best definition of automation?

A
the application of scientific knowledge to find answers and fix problems
B
the use of resources to manufacture goods more efficiently
C
the hiring of workers from all over the world to manufacture goods
D
the use of robotic equipment in a manufacturing process
15

Which statement best describes a pure market economy?

A
The decisions made by producers and consumers drive all economic choices.
B
The government determines economic choices and makes most decisions.
C
Producers and consumers make some economic choices while the government makes others.
D
Producer intervention in economic choices is strictly forbidden.
16

In free-enterprise systems around the world, there are

A
some restrictions on business ownership but not on business activity.
B
no restrictions on business ownership or business activity.
C
some restrictions on business activity but not on business ownership.
D
some restrictions on business ownership and business activity.
17

In a free-enterprise system, consumers decide

A
which services to buy.
B
how to set prices.
C
how to use materials.
D
which goods to export.
18

One of the three economic questions deals with deciding

A
what goods and services should be produced.
B
how goods and services will be marketed.
C
how consumers will receive products.
D
what the costs of production should be.
19

A society decides that it needs to produce more corn to feed the growing population. What must it do before it begins the production process?

A
understand who is in a position of authority to produce more
B
analyze existing resources, such as water availability
C
study the profitability of increasing corn production
D
determine how people will receive the surplus crops
20

How does a command economy differ from a mixed market economy?

A
In a command economy, citizens have more property rights. In a mixed market economy, citizens have fewer property rights.
B
In a command economy, citizens have fewer property rights. In a mixed market economy, citizens have more property rights.
C
In a command economy, citizens own all private property. In a mixed market economy, the government owns all public property
D
In a command economy, citizens own all public property. In a mixed market economy, the government owns all private property.

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