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Scarcity, Trade-Offs, and Production Possibilities MCQ

______ are examples of consumer goods.

Machines and equipment

Education and training

Factories and warehouses

Televisions and sofas

Answer

Correct Answer: Televisions and sofas

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During colonial times in U.S. history, ______.

Most people worked in customer service

Only three percent of the people worked on farms

Agriculture accounted for most jobs

Manufacturing accounted for most jobs

Answer

Correct Answer: Agriculture accounted for most jobs

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When an economy experiences growth, ______.

Trade-offs disappear

Scarcity still exists

Efficiency is impossible to attain

Consumer investment has been high

Answer

Correct Answer: Scarcity still exists

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An economy operating at a point along the production possibilities curve represents ______.

Waste

Shortages

Efficiency

Growth

Answer

Correct Answer: Efficiency

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If a nation’s economy operates inside of the production possibilities curve, it is ______.

Unregulated

Inefficient

At full productivity

At full employment

Answer

Correct Answer: Inefficient

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If an economy experiences growth, the production possibilities curve will ______.

Shift outward

Shift inward

Go from a bowed curve to a straight line

Contain more points but not move

Answer

Correct Answer: Shift outward

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If a point is outside a production possibilities curve, what does it show?

An efficient economy

An inefficient economy

An opportunity cost

An economic impossibility

Answer

Correct Answer: An economic impossibility

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In the circular flow diagram, goods and services flow ______.

Diagonally

Upward

Clockwise

Horizontally

Answer

Correct Answer: Clockwise

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The simple circular flow diagram shows interactions between ______.

Marketers and developers

Rulers and subjects

Governments and firms

Households and firms

Answer

Correct Answer: Households and firms

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Who are the sellers in factor markets?

Firms

Households

Governments

Tenants

Answer

Correct Answer: Households

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In product markets, ______ flow to the firms.

Payments

Services

Goods

Wages

Answer

Correct Answer: Payments

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Tractors, bulldozers, and dump trucks are all examples of ______.

Capital

Labor

Wages

Services

Answer

Correct Answer: Capital

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In a developed country, production is usually ______.

Capital-free

Labor-free

Capital-intensive

Labor-intensive

Answer

Correct Answer: Capital-intensive

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What is the most common type of economy in the world today?

Socialist

Mixed

Market

Command

Answer

Correct Answer: Mixed

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North Korea has a ______ economy.

Socialist

Mixed

Market

Command

Answer

Correct Answer: Command

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Simple circular flow model is An illustration of the continuous flow of

Inputs

Payments

Goods

All of these

Answer

Correct Answer: All of these

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Markets where products are bought by households and sold by firms are called

Product Markets

Competitive market

Free market

Imperfect market

Answer

Correct Answer: Product Markets

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Production possibilities curve is The available production technology that firms use to turn their inputs into outputs

True

False

Answer

Correct Answer: True

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An economy where government and the private sector determine the allocation of resources is called

Mixed Economy

Market Economy

Command economy

Planned economy

Answer

Correct Answer: Mixed Economy

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An economy that allocates goods and services through the private decisions of consumers, input suppliers, and firms is known as

Mixed Economy

Market Economy

Command economy

Planned economy

Answer

Correct Answer: Market Economy

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Labor intensive are Production that uses a ____ amount of labor

Large

Medium

Small

Little

Answer

Correct Answer: Large

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Condition where the opportunity cost of producing additional units of a good rises as society produces more of that good is called

Increasing opportunity cost

Decreasing opportunity cost

Constant opportunity cost

Variale opportunity cost

Answer

Correct Answer: Increasing opportunity cost

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Markets where households sell the use of their inputs to firms

Factor markets

Product Markets

Competitive market

Free market

Answer

Correct Answer: Factor markets

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______ sovereignty Is The concept that consumers vote with their dollars in a market economy

Producer

Consumer

Product

Market

Answer

Correct Answer: Consumer

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Command economy is an economy in which the _____ uses central planning to coordinate most economic activities.

Market

Government

Consumer

Producer

Answer

Correct Answer: Government

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Capital intensive are _____ that uses a large amount of capital

Products

Production

Consumption

Consumers

Answer

Correct Answer: Production

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