Economics Test 1 Answers

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 Review Assessment: Chapter 1 Quiz (Due January 29, 2012)
Status| Completed|
Score| 75 out of 100 points  |
Instructions| |
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   Question 1| 0 out of 2 points  |
| The following multiple-choice question requires critical thinking about In the News and World View articles that appeared in the text.  
One World View article is titled "Food Shortages Plague N. Korea." On a production-possibilities curve between private and public goods, a decrease in military spending in an effort to increase food production could be represented as:| | | | | |

Feedback:| The movement represents resources being pulled from one industry and allocated into the other industry.|
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   Question 2| 2 out of 2 points  |
| Which of the following is not one of the three core economic issues that must be resolved?| | | | | |
Feedback:| Resources are not unlimited.|
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   Question 3| 2 out of 2 points  |
| The fundamental problem of economics is:| | | |
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Feedback:| Wants will always exceed resources.|
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   Question 4| 2 out of 2 points  |
| In economics, scarcity means that:| | | |
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Feedback:| We cannot produce everything with fixed resources.|
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   Question 5| 1 out of 1 points  |
| The basic factors of production include:| | | |
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Feedback:| The basic four factors are required for the production of goods and services.|
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   Question 6| 1 out of 1 points  |
| Which of the following is not a factor of production?| | | | | |
Feedback:| Land, labor, capital, and entrepreneurship are the factors of production. Money does not fall under any category of the factors of production.|
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   Question 7| 2 out of 2 points  |
| With respect to factors of production, which of the following statements is not true?| | | | | |
Feedback:| Even resources owned by governments count as scarce factors of production.|
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   Question 8| 2 out of 2 points  |
| Which of the following is the best example of land?| | | | | |
Feedback:| Even natural resources such as lakes and oceans count as land.|
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   Question 9| 1 out of 1 points  |
| Capital, as economists use the term, refers to:| | | | | |
Feedback:| Capital is used to produce other goods and services, including other capital goods.|
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   Question 10| 2 out of 2 points  |
| Which economist argued that free markets unleashed the "animal spirits" of entrepreneurs, propelling innovation, technology and growth?| | | | | |
Feedback:| Competition leads companies to always try to do something better and more efficiently in order to maximize profits.|
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   Question 11| 2 out of 2 points  |
| The role of the entrepreneur in an economy is to:| | | | | |
Feedback:| The entrepreneur is an important factor of production and acts to mobilize the use of other resources.|
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   Question 12| 2 out of 2 points  |
| Economics can be defined as the study of:| | | |
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Feedback:| Economics studies how we get the most we can out of what we have.|
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   Question 13| 2 out of 2 points  |
| Opportunity cost is:| | | |
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Feedback:| Any choice involves sacrificing something else, which is the opportunity cost.|
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   Question 14| 2 out of 2 points  |
| Opportunity cost may be defined as the:| | | |
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Feedback:| The opportunity cost is your best alternative that is forgone.|
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   Question 15| 2 out of 2 points  |
| The "guns versus butter" dilemma that all nations confront is that:| | | | | |
Feedback:| To get more of one good, we must sacrifice production of other goods. "Guns versus butter" is a figurative way of...
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