Chapter 1 Econ.

1.

7 points

what are you producing when ON the Possible Production Frontier curve?

The company is producing to its fullest

The company is not producing anything

The company is producing below its possible production

It is impossible to produce at this point on the Production Possibility Frontier

2.

7 points

What factor of production is made up of the equipment and factories that are used in production?

Capital

Labor

Land

Entrepreneurs

3.

7 points

Why is it important for U.S. citizens to study and understand economics?

The study of economics is useless

The study of economics make citizens better Americans

The study of economics help citizens become better decision makers

The study of economics help citizens understand the entertainment industry

4.

7 points

What factor of production is considered the natural resource, or not created by humans?

Capital

Land

Labor

Entrepreneurs

5.

7 points

All of the following are factors of production EXCEPT:

Clothes

Entrepreneurs

Capital

Labor

6.

7 points

What happens to the Production Possibility Frontier Curve (PPF) when a company grows in assets like opening new branches or obtaining more machines?

The curve moves outward on the graph

The curve moves inward on the graph

nothing happens

The curve inverts on the graph

7.

7 points

What is Opportunity Cost?

An alternative choice

The opportunity you have to build a house

The cost of living

The cost of the next best choice

8.

7 points

What is considered a "service"?

Cats and Dogs

Books and Cars

Work that is performed for you

Items that you want that are economically useful

9.

7 points

What is an example of a "good"?

Concert Show

Auto repair

A car

Getting your hair cut

10.

7 points

What are the THREE basic questions of economics?

Where to produce, what to produce, and when to produce

When to produce, what to produce, and for whom to produce

What to produce, how to produce, and for whom to produce

There are no questions in economics

11.

7 points

What factor of production is made up of the risk takers, those who start up new businesses?

Capital

Labor

Land

Entrepreneurs

12.

7 points

What are trade-offs?

Trade-ins

An alternative choice

The cost of the next best choice

Secret options

13.

7 points

What does a Production Possibility Frontier (PPF) show?

The different combinations of two products that can be produced

What can be produced in an hour

How a business grows

Nothing

14.

7 points

What are you producing, when INSIDE the frontier curve?

It is impossible to produce at this point on the Production Possibility Frontier (PPF)

The company is producing to its fullest

The company is producing below its possible production

You are not producing anything

15.

7 points

What factor of production is made up of the people and their skills/abilities?

Capital

Entrepreneurs

Land

Labor