Introduction to Economics — Unit test Answers

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Opportunity cost means that something needs to be

A
replenished.
B
given up.
C
ignored.
D
paid for.
3

Which of the following would be a producer?

A
someone owning a book store
B
someone shopping in a grocery store
C
someone putting gas in a car
D
someone waiting in line at a bank
4

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.
5

What are the cons of a mixed market economy for most citizens? Select four answers.

A
There may be a sizable gap between rich and poor people.
B
It can be very difficult for citizens to start private businesses.
C
Citizens must pay for most basic necessities by themselves.
D
There is no guarantee of steady employment for many citizens.
E
Citizens may pay higher taxes than in other economic systems.
F
Citizens often purchase their own health care and higher education.
6

What might happen if an economy is unable to produce wanted goods and services?

A
People will go without them.
B
People will look elsewhere for them.
C
People will stop wanting them.
D
People will focus on needs instead.
7

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

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

Which of the following is influenced by personal economic choices? Choose four answers.

A
the cost of your rent and utilities
B
the resources you have available
C
the amount of money you spend on a bus pass
D
the money you decide to spend on leisure products
E
the amount of money you put into your savings account
F
the manner in which you balance your time between work and leisure
9

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

A
makes no economic decisions.
B
makes some economic decisions.
C
makes most economic decisions.
D
makes all economic decisions.
10

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

A
creating new projects
B
increasing regulation
C
lowering restrictions
D
raising more taxes
E
promoting hiring
11

In a competitive market, an electronics company releases a smartphone that is much faster than older models. This is an example of

A
following a federal regulation.
B
lowering prices for customers.
C
reducing the risk for consumers.
D
creating an innovative product.
12

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.
13

A pure market economy is sometimes called pure

A
a. command economy.
B
socialism.
C
communism.
D
capitalism.
14

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.
15

What type of labor force might a pottery factory want to focus on when hiring?

A
highly skilled
B
highly wealthy
C
highly educated
D
highly localized

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