Which term describes individual workers being able to focus on single tasks, enabling each one to be more efficient and productive?
How is Gross Domestic Product (GDP) different from Gross National Product (GNP)?
a) GDP is the total value of goods and services made and sold within a country's border, while GNP is the total value of goods and services sold by a country
b) GNP is the total value of goods and services made and sold within a country's border, while GDP is the total value of goods and services sold by a country
c) GDP involves only goods while GNP involves goods and services
d) GNP involves only goods while GDP involves goods and services
What is economics?
a) the study of how people demand resources
b) the study of how people use their resources to satisfy their needs
c) the study of the way consumers use money
d) the study of trade
What is an example of opportunity cost?
a) watching a TV show while simultaneously eating dinner
b) letting your brother eat your hamburger because you don't like the mayonnaise
c) waking up an hour earlier to go for a run instead of baking muffins for breakfast
d) enjoying a slice of pizza and then eating a second piece although it is less satisfying
Which term describes people and businesses that use goods or services?
What is the correct definition of demand?
a) the ability to purchase goods and services
b) the ability to trade
c) the ability and desire to trade goods
d) the ability and desire to purchase goods and services
What would be the total revenue of Awesome Barbie Doll, if one doll costs $15.50 and 100 dolls were demanded?
What is the form of trade in which people exchange goods and services without the use of money?
What is a monopoly?
a) when a certain business has complete control of a good or service in a market
b) a system of regulation of goods and services by the government
c) an economic system where money is invested in certain businesses to make a profit
d) a decrease in the supply of a demanded good
Credit is defined as...
a) a contract for borrowing money
b) borrowing money that is paid back over time
c) the ability to borrow in the future based on payment now
d) the ability to borrow now, based on the promise of future repayment
What distinguishes a good from a service?
a) a good can be seen, felt, and touched while a service is not physical
b) a good requires scarce resources to produce and satisfy human wants while a service does not
c) a good satisfies human wants while a service does not
d) both are physical but only a good requires scarce resources
What is a person called who organizes a business venture and assumes the risk for it?
What is capitalism based on?
a) investments in government businesses
b) public property and private ownership
c) private ownership and the investment of money in business ventures
d) an economic system in which the industry is controlled by the government
What term is defined by a relation showing the quantities of a good producers are willing and able to sell at various prices during a given period of time?
What is a condition resulting from not enough productive resources to satisfy people's unlimited wants?
What is inflation?
a) a decrease in the purchasing of goods
b) an increase in the purchasing of goods
c) an increase in the overall level of prices in the economy
d) a decrease in the overall level of prices in the economy
Which choice is a synonym for allocate?
d) pay back over time
Human resources are best defined as...
a) the broad category of human efforts, both physical and mental, used to produce goods and services
b) resources we need to survive
c) goods produced that are demanded by the consumer
d) the broad category of physical human efforts to produce goods
What is the main purpose of money?
a) to act as an item of exchange that everyone will accept in trade
b) to be a substitute for barter
c) to measure value
d) to satisfy human wants
What does productivity compare?
a) a specific measure of output compared to total input
b) the total output compared to a specific measure of input
c) the average output compared to a specific measure of input
d) the average input compared to a specific measure of output
What is the difference between microeconomics and macroeconomics?
a) microeconomics focuses on how different groups interact with each other while macroeconomics focuses on the economic behavior of small units
b) microeconomics involves inflation, unemployment and economic growth while macroeconomics involves individuals, households, and businesses
c) microeconomics is less important than macroeconomics
d) microeconomics is the study of economics at a small scale level while macroeconomics is the study of economics at a large scale level