Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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1.
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The situation in which some necessities have little value while some
non-necessities have a much higher value is known as
a. | paradox of value. | c. | trade-offs. | b. | opportunity cost. | d. | economic
interdependence. |
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2.
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Manufactured goods needed to produce other goods and services are called
a. | nondurable goods. | c. | Gross Domestic Product (GDP). | b. | capital
goods. | d. | consumer
goods. |
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3.
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To arrive at an economic decision, a decision-making grid may be used to
evaluate
a. | productivity. | c. | alternative choices of action. | b. | only durable
goods. | d. | only capital
goods. |
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4.
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Division of labor is a characteristic of
a. | home craft businesses. | c. | classroom education. | b. | assembly line production. | d. | entrepreneurship. |
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5.
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The study of economics is important because it enables us to
a. | describe our standard of living. | b. | increase our consumption of consumer
goods. | c. | become better decision makers. | d. | determine what goods ought to be
produced. |
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6.
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The dollar value of all final goods and services and the most comprehensive
measure of a country's total production output is
a. | its standard of living. | c. | a cost-benefit
analysis. | b. | financial capital. | d. | Gross Domestic Product (GDP). |
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7.
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A popular model used to illustrate the concept of opportunity cost is
a. | the production possibilities frontier. | c. | the paradox of
value. | b. | entrepreneurship. | d. | the factors of production. |
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8.
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An economy at its production possibilities frontier is operating
a. | with slow economic growth. | c. | without division of
labor. | b. | at full potential. | d. | as a free enterprise economy. |
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9.
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The money used to buy the tools and equipment needed for production is known
as
a. | capital goods. | c. | financial capital. | b. | the factors of production. | d. | wealth. |
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10.
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Actions in one part of the country or world that have an economic impact on what
happens elsewhere are examples of
a. | opportunity costs. | c. | specialization. | b. | trade-offs. | d. | economic
interdependence. |
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