1. A nation's production possibilities grow because the available workers use new smart phones and have become more productive. This is an example of growth caused by A.production opportunity B. global resources C. technology D.physical capital 2. An example of a "guns or butter" decision is: A. A country must decide whether to use its steel to build new fighter jets or new sports cars. B. A woman has to decide whether to replace her old car with a new sports car or a family sedan. C. A man must decide whether to install an alarm system in his house or buy new furniture for the living room. D. A school has to decide whether to build a new gym or renovate the auditorium 3. Which is an example of a shortage? A. Labor is available because the workers have other jobs. B. Water is available for irrigating a crop because it is used for other crops. C. PS5s are available because few people want to buy it. D. Nintendo Amiibos are sold out and are temporarily unavailable. 4. What is the opportunity cost of a decision? A. the series of alternative decisions that could have been made B. the best possible way the question could have been decided C. the different ways that a different person might have made the decision D. the most desirable alternative given up for the decision 5. When an item is produced in an economy, the law of increasing costs will cause A. the opportunity cost of making more rises B. the actual cost goes up but the opportunity cost goes down. C. the actual cost of making the item goes down. D. the production costs will decrease. 6. If an economy uses its resources to make the most goods and services possible it is: A. underutilized B. efficient C. using opportunity cost well D. globally aware 7. One example of an entrepreneur is A. a lawyer in a high-profile law firm that specializes in business law. B. an Olympic ice skater who later decides to join a professional ice show. C. a writer who is hired by a film studio to adapt a novel into a screenplay. D. an artist who runs a business painting murals in office buildings and restaurants. 8. What does a production possibilities frontier display? A. scarce and less scarce resources B. global diplomacy and costs of doing business C. the maximum amount that an economy can produce D. an economy that is producing but not at the maximum 9. What action would make someone an entrepreneur? A.creating and running a business that hires people to install sprinkler systems in lawns B. earning a lot of money as a computer programmer C. becoming a highly paid dancer D. inventing and selling the rights to manufacture a computer game 10.A country's leaders must choose between spending money on a new vaccine or spending the same amount on battleships. What kind of choice is this? A. physical capital B. guns or butter C. an economic trade-off D. human capital 11. Why do production possibilities frontiers have a curve? A. technological growth shrinks an economy's productivity. B. to prove that capitalism is greater than communism. C. the underutilization of resources D. the increasing costs resulting in increasingly less output 12. A nation's production possibilities curve could shrink towards the vertex if: A. A baby boom 20 years ago resulted in a large number of young adults in the population today. B. A nation loses land after being defeated in a war. C. An increase in the use of computer technology speeds up production. D. Thousands of investors from overseas invest money in a nation's economy 13. The physical capital used by a plumber includes: A. pipes and glue. B. a good attitude and money. C. wrenches and a work truck. D. hard work and time