AnswersEconomicsIntroduction to Economics

Practice Test Answers

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How does a counterclaim help support a writer’s position in an argumentative essay?

A
The counterclaim shows how the position is misleading.
B
The counterclaim allows readers to state their own positions.
C
The counterclaim shows how the opposing opinion is incorrect.
D
The counterclaim allows readers to provide their own interpretations.
3

Land is considered a resource because it

A
is used to produce things.
B
costs little or nothing to use.
C
is always available to use.
D
requires labor to be useful.
4

Which statement best describes the body paragraphs of an argumentative essay?

A
The body paragraphs acquaint readers with the topic and set up the ideas that will be presented.
B
The body paragraphs flesh out the argument and include counterclaims and evidence from research.
C
The body paragraphs establish the focus of the essay and tell readers what the writer’s position will be.
D
The body paragraphs tie the essay together and tell readers what they have learned and should take away.
6

Which situation best reflects the concept of free enterprise?

A
Consumers have a choice between two bakeries in a single city block.
B
An agency determines which supplements are safe for people to buy.
C
Local officials set the prices for all the gas stations in a community.
D
The government decides the minimum wage for all airline workers.
8

In the free-enterprise system of the United States, the government

A
makes most economic decisions.
B
makes all economic decisions.
C
makes no economic decisions.
D
makes some economic decisions.
9

Resources needed to provide goods or services are called

A
facets of production.
B
factors of production.
C
facts of production.
D
functions of production.
10

What role do government agencies play in a mixed market economy?

A
They own farms, factories, and other sources of production.
B
They run shipping companies and other sources of distribution.
C
They regulate some aspects of production and distribution.
D
They employ most of the workers in the economic system.
11

Which of these statements about opportunity cost are true? Choose three correct answers.

A
It influences consumers.
B
It influences producers.
C
It assists in anticipating profits.
D
It exists because resources are scarce.
E
It encourages people to spread their resources around.
12

Opportunity cost means that something needs to be

A
replenished.
B
given up.
C
ignored.
D
paid for.

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