AnswersLVA-Economics SPRINGEconomic Systems and Daily Life

Economic Systems and Daily Life — Unit test Answers

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What are some benefits to private ownership? Select three answers.Private ownership provides offices for government workers.Private ownership provides land or goods for all citizens to use.Private ownership can make it possible for a business to earn money.Private ownership might help a person move to another economic class.Private ownership allows a person to own goods that may increase in value.

A
Private ownership provides offices for government workers.
B
Private ownership provides land or goods for all citizens to use.
C
Private ownership can make it possible for a business to earn money.
D
Private ownership might help a person move to another economic class.
E
Private ownership allows a person to own goods that may increase in value.
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threefourfivesix

A
three
B
four
C
five
D
six
4

Which of the following statements about opportunity cost are true?CHECK ALL THAT APPLY.It exists because resources are scarce.It influences consumers.It influences producers.It assists in anticipating profits.It encourages people to spread their resources around.

A
It exists because resources are scarce.
B
It influences consumers.
C
It influences producers.
D
It assists in anticipating profits.
E
It encourages people to spread their resources around.
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.
7

"Everyone’s rights should be protected" is an argument

A
for competition.
B
against competition.
C
for regulation.
D
against regulation.
8

The government has the right to own all land, buildings, and factories in a

A
closed economy.
B
command economy.
C
mixed market economy.
D
pure market economy.
9

In a command economy, a cotton farm floods after a heavy storm. The repair work most likely will be paid by

A
the private business that operates the farm.
B
the government group that runs the farm.
C
the individual who manages the farm.
D
the family who owns the farm.
10

Land is considered a resource because it

A
is always available to use.
B
is used to produce things.
C
costs little or nothing to use.
D
requires labor to be useful.
11

John has a large apple orchard. He has decided to bake pies and sell them at the local farmer’s market. Which best describes John’s use of economics?

A
John is using available and renewable resources.
B
John is relying on inexpensive labor costs to improve profits.
C
John is using resources to produce both goods and services.
D
John is assuming consumers will have limited need for his product.
12

Opportunity cost means that something needs to be

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

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