Presentation on theme: "In a restaurant, cash registers,"— Presentation transcript:
1 In a restaurant, cash registers, freezers, and grills areA economic goods.B free goods.C consumer goods.D capital goods.
2 Scarcity is the result of limited resources andA the failure to produce whatconsumers want.B the lack of adequate technologicalprogress.C overpopulation in industrialcountries.D unlimited wants and needs.
3 In order for a product to have value it must have utility In order for a product to have value it must have utility. Utility is the capacity toA produce industrial products.B provide a service in the market.C receive goods and services.D be useful and provide satisfaction.
4 The more units of a certain economic product a personacquires, the less eager that personis to buy more of that product.According to economists, this isthe principle ofA substitution effect.B income effect.C variable proportions.D diminishing marginal utility.
5 Dina likes two skirts, one red and one blue. She has enough moneyfor one, so she buys the red skirt.The blue skirt is theA capital good.B limited resource.C opportunity cost.D commodity.
6 To maintain or increase production in the dairy industry,the government providesA productivity.B regulations.C subsidies.D rationing.
7 Which of the following would be a monetary incentive?A a company carB a larger officeC an employee loungeD an assigned parking space
8 Which of the following would be a non-monetary incentive?A overtimeB an office with a viewC an increased benefits packageD paid vacation
9 The economist who identified that self-interest and competition drivea market economy wasA Thomas Malthus.B Milton Friedman.C Alan Greenspan.D Adam Smith.
10 Private property is an incentive in a market economy since itprovides the ability toA avoid paying taxes on annualearnings.B enjoy productivity at the worksite.C keep any earned rewards.D share the benefits of publicservices.
11 Fundamental to capitalism is the ability of individuals andbusinesses to own and controlA natural resources.B private property.C public utilities.D transportation facilities.
12 Which belief suggests that government should not interfere inits country’s business or economicaffairs?A scarcityB voluntary exchangeC laissez-faireD quotas
13 Demand for goods will be more elastic if the goods A are essential.B have many substitutes.C have no complements.D are trendy.
14 A local restaurant determines that hamburgers have a price elasticityof If hamburger prices dropfrom $2.00 to $1.50, the restaurantwill supply how manyhamburgers?A 50 percent more hamburgersB 25 percent less hamburgersC 25 percent more hamburgersD 50 percent less hamburgers
15 What happens to the demand for a luxury good when its priceincreases?A consumer demand will remain thesameB consumer demand will increaseC consumers will buy morecomplementary goodsD consumers will buy moresubstitute goods
16 Productivity is increased by specialization because itA reduces employees needed.B reduces the work load ofemployees.C increases workers’ skills.D increases dependency on foreigncountries.
17 A hurricane hits the coast of Florida and subsequent weatherconditions destroy half of theoranges produced in orangeorchards. What happens to theprice and quantity of oranges onthe market?A The supply of oranges decreases,and the price of oranges increases.B The supply of oranges increases,and the price of orangesdecreases.C The supply of oranges decreases,D The supply of oranges increases,
18 Monopolies areA price takers.B price setters.C competitive.D illegal.
19 What results when competitors undercut the market price in anattempt to gain an advantage?A interdependent pricingB price competitionC price leadershipD price war
20 In a competitive economy the adjustment process helps establisha relatively stable price wherequantity demanded is the same asquantity supplied. This point inthe market is calledA correction.B elasticity.C equilibrium.D surplus.
21 If Congress limits the number of foreign automobiles that enter theUnited States, prices of foreignautomobiles willA increase because of technologycosts.B increase because of decrease insupply.C decrease because of newtechnology.D decrease because of increaseddomestic supply.
22 The role of an entrepreneur in a market economy includes all thefollowing exceptA to take on the risk of enterprisewith his or her own resources insearch for profit.B to bring together the factors ofproduction to create a desiredproduct or service.C to lobby government for strongerbusiness regulations.D to explore and developed new, orunrecognized, markets andproducts.
23 When the sale of a product is no longer generating a profit, the company producing the product ismost likely toA continue making the product as itis and hope that consumer valueschange.B improve or alter the product tomeet the needs and interests ofconsumers.C petition the government forregulations that eliminatecompeting products.D decrease advertising costs to savemoney on the low-profit product.