Transcript C machines used to produce goods

Economics Review 1
What is the human effort that is
used to produce goods called?
A profit
B capital
C labor
D stock
What is the human effort that is
used to produce goods called?
A profit
B capital
C labor
D stock
Which of the following is an
example of capital?
A land used to produce goods
B managers’ salaries
C machines used to produce goods
D government regulations
Which of the following is an
example of capital?
A land used to produce goods
B managers’ salaries
C machines used to produce goods
D government regulations
The tools a self-employed electrician uses in
his or her business are examples of which of
the following?
A capital
B entrepreneurship
C land
D labor
The tools a self-employed electrician uses in
his or her business are examples of which of
the following?
A capital
B entrepreneurship
C land
D labor
Which of the following best describes
the relationship between factors of
production and people’s wants?
A Factors and wants are both limited.
B Factors are limited and wants are
unlimited.
C Factors and wants are both unlimited.
D Factors are unlimited and wants are
limited.
Which of the following best describes
the relationship between factors of
production and people’s wants?
A Factors and wants are both limited.
B Factors are limited and wants are
unlimited.
C Factors and wants are both unlimited.
D Factors are unlimited and wants are
limited.
Which of the following most directly
determines the cost of the factors of
production?
A supply and demand
B wants
C profit
D natural resources
Which of the following most directly
determines the cost of the factors of
production?
A supply and demand
B wants
C profit
D natural resources
Workers in a shoe factory are voting
on whether to accept the owner’s wage
offer or hold a sit-down strike. Which
two factors of production are most
involved in this situation?
A capital and entrepreneurship
B labor and entrepreneurship
C natural resources and capital
D natural resources and labor
Workers in a shoe factory are voting
on whether to accept the owner’s wage
offer or hold a sit-down strike. Which
two factors of production are most
involved in this situation?
A capital and entrepreneurship
B labor and entrepreneurship
C natural resources and capital
D natural resources and labor
What happens if the supply of a factor
goes up while the demand for the factor
goes down?
A Inflation sets in and leads to increased
demand for the factor.
B The price that can be charged for the
factor goes down.
C The cost of producing the factor goes up.
D Nothing changes and the price of the
factor stays the same.
What happens if the supply of a factor
goes up while the demand for the factor
goes down?
A Inflation sets in and leads to increased
demand for the factor.
B The price that can be charged for the
factor goes down.
C The cost of producing the factor goes up.
D Nothing changes and the price of the
factor stays the same.
What are people called who
assume business risks and
manage new businesses?
A producers
B executives
C entrepreneurs
D consumers
What are people called who
assume business risks and
manage new businesses?
A producers
B executives
C entrepreneurs
D consumers
By finding less expensive lumber
overseas, a furniture manufacturer
reduces which of the following?
A capital good costs
B profit
C natural resource costs
D demand
By finding less expensive lumber
overseas, a furniture manufacturer
reduces which of the following?
A capital good costs
B profit
C natural resource costs
D demand
What is the most direct cause of
scarcity?
A pursuit of profit
B competition for resources
C the law of supply
D the law of demand
What is the most direct cause of
scarcity?
A pursuit of profit
B competition for resources
C the law of supply
D the law of demand
What is a business called that
provides goods or services?
A consumer
B labor
C producer
D monopoly
What is a business called that
provides goods or services?
A consumer
B labor
C producer
D monopoly
What may happen if consumers have
less money to spend on products?
A The economy may slow down, which may
reduce prices for some factors.
B International trade increases because
foreign goods are cheaper.
C Wages go up which increases labor costs.
D Tax rates go up.
What may happen if consumers have
less money to spend on products?
A The economy may slow down, which
may reduce prices for some factors.
B International trade increases because
foreign goods are cheaper.
C Wages go up which increases labor costs.
D Tax rates go up.
Which statement best describes the
circular flow model of the economy?
A It helps entrepreneurs decide where to
locate their factories.
B It is the plan for how to raise government
revenue.
C It helps entrepreneurs decide which goods
to buy overseas.
D It demonstrates how exchanges for scarce
resources are made in the U.S. economy.
Which statement best describes the
circular flow model of the economy?
A It helps entrepreneurs decide where to
locate their factories.
B It is the plan for how to raise government
revenue.
C It helps entrepreneurs decide which goods
to buy overseas.
D It demonstrates how exchanges for
scarce resources are made in the U.S.
economy.
Which of the following statements
most correctly describes an economic
relationship?
A Demand goes down when prices go down.
B A lack of competition tends to decrease
supply.
C Scarcity has nothing to do with demand.
D Supply is greatest in command economies.
Which of the following statements
most correctly describes an economic
relationship?
A Demand goes down when prices go down.
B A lack of competition tends to decrease
supply.
C Scarcity has nothing to do with demand.
D Supply is greatest in command economies.
Which term is used to describe the
basic economic problem that forces
people to make decisions about how to use
resources wisely?
A profit
B opportunity cost
C scarcity
D comparative advantage
Which term is used to describe the
basic economic problem that forces
people to make decisions about how to use
resources wisely?
A profit
B opportunity cost
C scarcity
D comparative advantage
What are wages?
A money a business has left after paying
expenses
B money used to pay for labor
C money used to buy capital goods
D money that is declining in value because
of inflation
What are wages?
A money a business has left after paying
expenses
B money used to pay for labor
C money used to buy capital goods
D money that is declining in value because
of inflation
How are goods different from
services?
A Goods are manufactured.
B Labor produces goods.
C Demand influences a good’s cost.
D Goods are scarce.
How are goods different from
services?
A Goods are manufactured.
B Labor produces goods.
C Demand influences a good’s cost.
D Goods are scarce.
What is one way in which wages
are different from salaries?
A Wages impact profit.
B Wages are typically paid by the hour.
C Wages are taxed.
D Wages have a greater impact on
economic growth.
What is one way in which wages
are different from salaries?
A Wages impact profit.
B Wages are typically paid by the hour.
C Wages are taxed.
D Wages have a greater impact on
economic growth.
Which of the following is a
manufacturer’s most likely response to a
shortage of skilled workers?
A change his or her product line
B increase wages to attract more of the
scarce workers
C increase prices to make higher profits
D go out of business entirely
Which of the following is a
manufacturer’s most likely response to a
shortage of skilled workers?
A change his or her product line
B increase wages to attract more of the
scarce workers
C increase prices to make higher profits
D go out of business entirely