AnswersMO-EconomicsUnit Test

Unit Test — Unit test Answers

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1
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An economist most likely spends time studying

A
methods for spending and saving money.
B
reasons producers experience scarcity.
C
ways to balance time between work and leisure.
D
interactions between producers and consumers.
2
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One method for studying opportunity cost is to think in terms of

A
risk and ability.
B
pros and cons.
C
tradeoffs
D
trial and error.
3

Which nation has a communist command economy?

A
Norway
B
North Korea
C
South Korea
D
the United States
4

A command economy tends to exist under a

A
democratic government that provides little regulation.
B
socialist government that provides some regulation.
C
representative government that provides no regulation.
D
communist government that provides a lot of regulation.
5

Which statement best describes a command economy?

A
Government intervention in economic choices is strictly forbidden.
B
The government determines economic choices and makes most decisions.
C
The decisions made by producers and consumers drive all economic choices.
D
Producers and consumers make some economic choices while the government makes others.
6

[BLANK]

A
regulation
B
goals
C
dependency
D
weakness
7

Which activity would a consumer most likely perform?

A
filling a lawnmower with gas
B
answering phones in an office
C
growing vegetables in a home garden
D
helping mow lawns in the neighborhood
8

[BLANK]

A
production possibility curve
B
production supply curve
C
production opportunity curve
9

What is one way a command economy affects the lives of private citizens?

A
Citizens cannot make most economic decisions.
B
Citizens can only work in factories or on farms.
C
Citizens must pay for their own health care.
D
Citizens have limited access to education.
10

[BLANK]

A
argumentative
B
informative
C
narrative
11

A company manufacturing shirts for a discount department store decides to create a new style of cotton shirt. The company would most likely produce shirts that will

A
sell at a high price.
B
be less costly to create.
C
use a nonrenewable resource.
D
satisfy the wants and needs of consumers.
12

Opportunity cost occurs because of a producer’s need to

A
limit resources.
B
protect resources.
C
allocate resources.
D
spend resources.
13

What is one way that economics can influence your daily life?

A
by forcing a decision on a career path
B
by limiting your ability to save money
C
by helping you understand that every choice has a tradeoff
D
by determining if goals are actually worthwhile
14

A mixed market economy tends to exist under a

A
communist government that provides little regulation.
B
democratic government that provides some regulation.
C
representative government that provides no regulation.
D
socialist government that provides a lot of regulation.
15

Which statement best describes a pure market economy?

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

Fantastic Snack Company has spent months developing a new type of snack chip, but the chips are not selling. Which of the following is the most likely mistake Fantastic Snack Company made?

A
conserving too valuable resources
B
spending capital it did not have
C
not researching production methods
D
not meeting the wants of its consumers
17

Read the following scenario. A clothing company wants to expand into new regions. It is looking at an urban area with a large number of vacant warehouses. The population is made up of people with average educations and a lower standard of living. The company is experiencing slower sales but has hopes that product will take off and be successful. Which of the factors of production will the company need to address most closely when making its decision to expand?

A
land
B
capital
C
land and labor
D
labor and capital
18

Which object is likely to have the most value based on the concept of scarcity?

A
a flowering plant
B
a silver necklace
C
a new coffee table
D
a crop of oranges
19

Every economic decision has

A
only positive benefits.
B
gained opportunities.
C
unavoidable limitations.
D
a consequence or tradeoff.
20

Which individual is a producer?

A
a host who seats customers in a busy restaurant
B
a mother who demands quality produce for her family
C
a farmer who grows only what his family needs to survive
D
a student who builds a bookcase from bricks and boards

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