Which factor of production describes manufactured aids used in producing consumer goods or services?

Select one:

a. entrepreneurial ability

b. land

c. labor

d. capital

Given that there is scarcity in the world, economic decisions involve:

Select one:

a. analysis of efficient use of unlimited resources

b. comparison of marginal benefit and marginal cost

c. an examination of negative marginal utility

d. the assumption that humans are selfish

Producers face trade-offs when creating goods and services because

Select one:

a. only a limited number of productive resources are available at a given time.

b. the marginal benefits of production seldom exceed the marginal costs.

c. production is often inefficient due to taxation and other government interventions.

d. ethical considerations limit what people are willing to produce or purchase.

As a person's income increases, which of the following will they have to consider in the context of their budget line?

Select one:

a. labor costs

b. opportunity cost

c. natural resources

d. capital goods

Which of the following best characterizes a scarce good?

Select one:

a. zero marginal costs

b. positive opportunity cost

c. zero opportunity cost

d. positive marginal benefits

Consider the following production possibility frontier for goods X and Y. As production moves from point B to point A,

Select one:

a. good Y becomes more scarce.

b. good X becomes more expensive.

c. opportunity costs decrease.

d. production becomes more efficient.

Consider the following production possibilities frontier for televisions and phones. To move production from point A to point B, a country must

Select one:

a. trade with another country for an additional two units of televisions.

b. sell two units of televisions and purchase an additional unit of phones.

c. produce two fewer units of televisions and one more unit of phones.

d. increase production efficiency of both televisions and phones.

Which of the following would lead to a movement along a supply curve?

Select one:

a. The price of the good changes.

b. The suppliers' expectations about the future price of the good change.

c. The cost of production changes.

d. The prices of substitutes in production change.

If the wage of workers in the car manufacturing industry increases significantly while all other factors of production remain unchanged, we might expect the

Select one:

a. the quantity of cars supplied to decrease along a stable supply curve.

b. the supply of cars to increase.

c. the quantity of cars supplied to increase along a stable supply curve.

d. the supply of cars to decrease.

A manufacturer produces bicycles and scooters. If the price of bicycles increases next year, all else equal, how would this price affect the manufacturer's production of bicycles and scooters next year?

Select one:

a. The manufacturer's marginal cost of bicycle production will increase.

b. The manufacturer will shift some production of scooters to bicycles.

c. The manufacturer's marginal profit of bicycle production will decrease.

d. The manufacturer will stop producing bicycles.

When the price of beef rises, Karen increases her purchases of chicken. To Karen,

Select one:

a. beef and chicken are substitutes.

b. beef and chicken are normal goods.

c. beef and chicken are inferior goods.

d. beef and chicken are complements.

Competitive markets result in

Select one:

a. productive efficiency and allocative equity.

b. productive equity and allocative efficiency.

c. productive and allocative equity.

d. productive and allocative efficiency.