1. 1
One thing that the public and many economists overlook when considering the solution to a problem is:
The unintended consequences
The intended consequences
The positive incentives
The negative incentives

2. One thing that the public and many economists overlook when considering the solution to a problem is:
The unintended consequences
The intended consequences
The positive incentives
The negative incentives

3. 2
The invention and use of machinery, such as the cotton gin, water wheel, and personal computer, allowed people to make things more easily. These inventions directly aided societies in improving in which economic areas?
Productivity
Competition
Scarcity
Unemployment

4. 2
The invention and use of machinery, such as the cotton gin, water wheel, and personal computer, allowed people to make things more easily. These inventions directly aided societies in improving in which economic areas?
Productivity
Competition
Scarcity
Unemployment

5. 3
According to the table, over a three month period The Pencil Company has experienced:
An increase in its numbers of employees
A decrease in its number of employees
An increase in productivity
A decrease in productivity

6. 3
According to the table, over a three month period The Pencil Company has experienced:
An increase in its numbers of employees
A decrease in its number of employees
An increase in productivity
A decrease in productivity

7. 4 Productivity may BEST be defined as: The quantity of production
The amount of revenue earned
The relationship between inputs to outputs
The quality of what is produced

8. 4 Productivity may BEST be defined as: The quantity of production
The amount of revenue earned
The relationship between inputs to outputs
The quality of what is produced

9. 5
Use the Possible Combinations Schedule, what is the marginal opportunity cost for increasing boat production from 80 to 105?
50 Cars
50 Boats
25 Cars
25 Boats

10. 5
Use the Possible Combinations Schedule, what is the marginal opportunity cost for increasing boat production from 80 to 105?
50 Cars
50 Boats
25 Cars
25 Boats

11. 6 In the graph, point C represents: Unemployment Inefficiency
Unattainability
Efficient Production

12. 6 In the graph, point C represents: Unemployment Inefficiency
Unattainability
Efficient Production

13. 7
In a command economy, resources are allocated to the production of goods and services based on:
The forces of supply and demand
Traditional customs passed down through generations
Decisions by government planners
Comparative advantage over other nations

14. 7
In a command economy, resources are allocated to the production of goods and services based on:
The forces of supply and demand
Traditional customs passed down through generations
Decisions by government planners
Comparative advantage over other nations

15. 8
Susanna loves cheerleading, but she is now facing a tough decision. She has to make a decision between how much time she spends as a cheerleader and how much time she needs to spend studying her economics. Which economic concept describes the problem she is facing?
Fiscal Policy
Competition
Scarcity
Supply and Demand

16. 8
Susanna loves cheerleading, but she is now facing a tough decision. She has to make a decision between how much time she spends as a cheerleader and how much time she needs to spend studying her economics. Which economic concept describes the problem she is facing?
Fiscal Policy
Competition
Scarcity
Supply and Demand

17. 9
Which of the following BEST explains why mechanical engineers are paid more than janitors?
Engineers make more money for a firm and are in shorter supply
Engineers are more educated than janitors
Engineers do mental work but janitors do physical work
Engineers work longer hours than janitors

18. 9
Which of the following BEST explains why mechanical engineers are paid more than janitors?
Engineers make more money for a firm and are in shorter supply
Engineers are more educated than janitors
Engineers do mental work but janitors do physical work
Engineers work longer hours than janitors

19. 10 The market uses which allocation strategy? Price Government
First come, first serve
Contests

20. 10 The market uses which allocation strategy? Price Government
First come, first serve
Contests