unit 1 test review ssef1-ssef6. what factor of production? buying tools & equipment

Unit 1 Test ReviewSSEF1-SSEF6

What Factor of Production?

buying tools & equipment

Why will there always be scarcity?

Because scarcity exists, any strategy for allocating scarce resources must address

5 If a government wanted to improve the productivity of its human resources it could

  Alower interest rates to make borrowing money easier.

  Binvest more money in developing solar and wind energy.

  Ccommit to drilling for oil in protected wildlife areas.

  Dexpand funding and opportunities for college and technical training.

Acme Furniture Manufacturers has just purchased five Claiborne wood turning lathe machines. This purchase BEST represents which of the factors of production?

Land, labor, capital, and entrepreneurs are the

The amended Telemarketing and Consumer Fraud Abuse Protection Act of 1994 states: A consumer [can] stop calls from all companies

within the FTC's jurisdiction by placing his or her telephone number on a central "do-not-call" registry... except when the consumer has an "established business relationship" with the seller on whose behalf the call is made. The Federal Trade Commission's "do-not-call" registry is intended to

reduce the amount of junk mail received by consumers.

permit telemarketing calls to new clients on the registry.

restrict ALL telemarketing calls to consumers on the registry list.

allow consumers to engage in voluntary transactions with businesses.

In a market economy, prices are established by

Aconsumers and labor unions. Bdecree of government agencies. Cthe interaction of supply and demand. Dbusinesses which buy and sell the products.

How do private property rights contribute to a capitalist system?

The government owns most of the factors of production.

High quality products and reasonable prices are guaranteed.

Individuals are free to own the resources used to produce goods.

Businesses can determine what to produce based on consumer demand.

When the allocation of goods and services by a free market is not efficient,

Amarket powers can block beneficial gains.

Bmonopolies can work to redistribute market equity.

Cgovernments can step in to resolve the market failure.

Dindividuals of the markets can share equitable results.

Juan realizes that if he studies an extra hour for his test, he will score five points higher. For each extra hour spent studying, he is getting one hour less sleep. When deciding whether to spend an additional hour studying or sleeping, Juan is engaged in what economic activity?

Abartering

Bmarginal analysis

Cmarket transactions

Dtrade negotiations

Which of these is the MOST significant impact of the wide availability of computers and high-speed internet connections since the start of the 21st century?

Aan increase in television sales

Ba decrease in college graduates

Cmore people teleworking from home

Drenewed interest in the space program

In a market economy, prices are established by

Aconsumers and labor unions.

Bdecree of government agencies.

Cthe interaction of supply and demand.

Dbusinesses which buy and sell the products.

The MOST LIKELY incentive for entrepreneurs to start a new business is

Ato make a profit.

Bto discover a new patent.

C to risk financial failure.

Dto create a new social benefit.

Which of the following is MOST LIKELY a result of a high unemployment rate in the United States?

Aincreased revenues

Bincreased demand for consumer goods

Cincreased production of capital goods

Dgreater government expenditures for transfer payments

One advantage of a market economy is its ability to

A limit consumer choices.

B control the price of labor.

C sell goods at a high price.

D adjust to changes over time.

A 8 B 9 C 10 D 11

The owners of a local business are making a rational decision about how many workers to hire. How many workers would cause the marginal costs to exceed the marginal benefits?

A 8

B 9

C 10

D 11

You and two of your friends decide to open an e-business selling a product online. Instead of all three partners creating the product, you each focus on one aspect of the business. This is MOST reflects the concept of

A exports. B imports. C absolute advantage. D specialization

In what way does specialization increase productivity?

A Specialization increases the demand for a product.

B Specialization reduces the cost of production.

C Specialized workers are generally more highly educated.

D Specialization reduces scarcity.

Based on the U.S. Census information in the graph,

Aannual earnings are not impacted by educational attainment.

Beducational attainment has an inverse relationship to annual earnings.

Call workers with higher educational attainment have higher annual earnings.

Dannual earnings have a generally positive correlation with educational attainment.

What generalization about educational attainment and annual earnings can be made according to the graph?

A

Investment in education can lead to higher annual earnings.

B

Annual earnings remain constant for all educational degrees.

C

A worker with some college earns more annually than a worker with an Associate's degree.

D

Although a worker with a Professional degree earns more initially, the annual earnings decrease over time.

When the amount of output produced remains the same by a given amount of inputs that has decreased, the MOST LIKELY result is

A

overall productivity rises.

B

economic interdependence rises.

C

consumer spending on productive resources increases.

D

business spending on productive resources increases.

Aincreased demand for basketballs

Ba shortage of needed raw materials

Can increase in the number of workers

Dincreased efficiency because of new whoopee cushion technology

In this production possibilities graph, what MIGHT cause the line (frontier) to move to the left?

Entrepreneurs develop new goods and services to start a business.  Why is entrepreneurship often difficult?

There is a risk that the new business may fail. There are laws that restrict most new businesses. Motivation for profit may not be the best incentive. Healthy competition encourages higher quality products.

Which nation's economy could best be described as a command economy, where the government determines guidelines for economic development and sets goals for economic production?

A Australia

B Cuba

C India

D Japan

Under which economic system would factors of production MOST LIKELY be owned by the government?

mixed economy market economy command economy traditional economy

32   According to the information from

the U.S. Department of Labor, which factor has the GREATEST impact on raising labor productivity?

 A research & development  B education & skill  C profit sharing  D recruitment

3

3

How does the activity in this image represent specialization?

  A The products being produced are specialized for each worker.

  B This worker is completing one of many parts of a final product.

  C This worker is making a product that is different from that of other workers.

  D This worker is performing many different steps in the production of a product.

Which South Asian country is the BEST example of a mixed economy, in which there are elements of both market and command economies?

India China Cuba North Korea

In a market economy, a high price is a signal for

producers to supply less and consumers to buy less. producers to supply less and consumers to buy more. producers to supply more and consumers to buy less. producers to supply more and consumers to buy more.

At the start of the 21st century in Britain, Germany, and Russia, the basic economic questions of what, how, and for whom to produce were answered by

industrial labor unions producers and consumers. central planning committees. international planning organizations.

Brazil trades with the United States more than it does with any other country. Industrially, the private sector has made Brazil one of the most advanced countries in Latin America,with massive investment taking place since 1996. Still, over 1 million people live in state-owned housing and millions more are covered by government operated health care.

mixed economy.

market economy.

command economy.

traditional economy.

Freedom to own the factors of production, subsidized transportation services, and involuntary spending and investments are examples of

mixed economies. market economies. command economies. traditional economies.

Marginal benefit: what consumers would be willing to give up in order to purchase or acquire on additional unit of a good."Marginal benefit" is MOST related to what economic concept

opportunity cost supply elasticity demand elasticity equilibrium price

Rationing is a system under which an agency such as the government decides everyone's "fair" share. Rationing has often been used during wartime. If people receive a set ration regardless of the amount of work completed, how would this affect peoples' incentive to work? The incentive to work will

not change. People might feel more inclined to work. People might feel less inclined to work. There is no effect on the incentive to work.

Bob would like to increase his earnings. The option MOST LIKELY to increase his earnings potential in the long-term is to

spend money to renew current training. take a similar position with a different company. spend money for additional training and education. laterally transfer to a different job within his company.

Productivity may BEST be defined as

the quantity of production the amount of revenue earned the ratio of inputs to outputs the quality of what is produced

Which of these is the BEST example of how the free enterprise system of the United States promotes individual initiative?

Men must register for selective service. A citizen may be called to serve on a jury. The legislative branch levies an income tax. Inventors can have their discoveries patented.

Workers concentrating their efforts on a limited number of tasks, thereby increasing productivity is called

A entrepreneurship. B homogenization. C sequestration. D specialization.

Which of these is an example of how the U.S. Constitution protects the free enterprise system?

Congress is given the power to borrow money.

Congress is given the authority to collect taxes.

Congress is given the authority to raise and support armies.

Congress is given the authority to grant patents and copyrights.

All of these are characteristics of

• Decentralized decision making.Adjusts to changes in the market place.Producers and consumers have control of the economy.

a traditional economy.

a socialist economy.

a command economy.

a market economy.

A government that operates a market economy MIGHT becomeinvolved in the economy to increase the profits of a specific company. to eliminate income inequality among its citizens. to make sure all products are produced the same way. to provide public goods and services to its citizens.

In laissez-faire economics, what is the role of the government in the economy?

to regulate product quality and consumer safetyto set prices of goods and services to determine what should be produced government stays out and does not regulate