1. All of the following are types of decisions that can be made at the margin EXCEPT A. whether or not to hire 5,000 new workers. B. whether to leave early in the morning or late in the day for a vacation. C. whether or not to buy a Tesla Car. D. whether to plant tomato fields or corn fields on a large farm 2. What is a car manufacturing plant an example of? A. guns or butter B. physical capital C. human capital D. an economic trade-off 3.The community of Templeville traditionally produces a large number of smart phones and a small amount of mango fruit. Mangos are become increasingly popular, and Templeville has decided to expand mango cultivation and decrease smart phone manufacturing. According to the law of increasing costs, A. the cost of producing electric cars will decrease. B. the cost of producing smart phones will decrease and mangos will become extinct. C. the cost of producing mangos will decrease while the cost of producing smart phones will increase. D. the cost of producing mangos will increase. 4. Why are all goods and services scarce? A. Some things are needs and others are wants. B. Some goods cost more than others. C. Some people want to have more goods than others. D. All resources are scarce. 5. The resources used to generate goods (such as the Nintendo Switch) and services (such as restaurant meals) are the A. production trade-offs. B. factors of production. C. opportunity costs. D. production possibilities 6. A nation's government must decide between purchasing tanks or building hospitals for it's citizens. This kind of decision is a A. global trade-off. B. decision at the margin. C. basic economic decision D. guns or butter issue. 7. Marginal thinking includes: A. putting all of your money in a savings account because the interest rates are so high. B. deciding to buy a car you don't really like because it is significantly less expensive than the one you want. C. determining whether it is better to spend your savings on a new iPhone or on a television. D. deciding whether the benefit of working two extra hours per day is worth the sacrifice of study time 8. Which answer illustrates scarcity, not a shortage? A. You have spent your last penny and payday is a week away. B. Gasoline was rationed in America during World War C. A popular toy is sold out during the busy holiday season. D. A person wants an endless supply of goods and services but cannot have them. 9. Which items are considered land in Economics? A. dams, bridges, rock quarries, oil wells B. farm fields, tractors, pesticides, fertilizers C. factories, office buildings, assembly lines, workers D. iron ore, natural gas, fertile soil, water 10. When many more of an item is produced in an economy (such as electric cars), the law of increasing costs will cause A. the production costs to decrease. B. the actual cost of making the item to go down. C. the opportunity cost of making more to rise. D. the actual cost will go up but the opportunity cost will go down. 11. Apple Inc.'s resources are being underutilized, meaning: A. The company is producing fewer iPhones and Computers than it could be. B. The company is running more efficiently than its competitors. C.The company is paying its employees less than it should be. D. The company is making phones when it could be making t-shirts instead. 12.Resources that are created by humans and used to generate goods and services are called A. labor B. production C.physical capital D.services 13.Apple installs new robotic machinery to build iPhones. Now, iPhones take only five minutes to make, and the factories can produce many more iPhones than before. This is an example of growth caused by A.production possibility curves. B. human capital. C. technology. D. land and natural resources. 14. What is the function of a production possibilities graph? A. to show different ways a simplified, fictional economy can use it's resources. B. to make it possible to increase an economy's output. C. to keep an economy from having nonproductive workers. D. to enable a country to mobilize to win a war. 15. You bought two frappuccinos with the last $10 in your checking account, and your next payday is on Monday. What is the opportunity cost of these drinks? A. the movie with your friends this Saturday night you would have enjoyed had you not bought the frappuccino's B. the difference between the cost to produce the frappuccinos and the price you paid for them C. $5 D. $10