Which of the following statements about the factors of production is accurate?

A.They are all scarce because of unlimited wants and needs.

B.They are not subject to the law of diminishing marginal benefit.

C.They are categorized into consumer, capital, labor, and entrepreneurship.

D.Most are scarce, except for non-rival factors.

E.They are acquired in the product market.

Which of the following describes a situation in which total costs and benefits are the only viable evaluation to inform a decision?

A.Some resource costs are unknown.

B.A good or service cannot be subdivided into increments or additional units.

C.The opportunity cost is unquantifiable.

D.There are no implicit benefits.

E.An accountant identifies steep explicit costs.

Which of the following must be true for a good for which there is demand and a limited supply?

A.The good has no utility.

B.The good's producer enjoys a comparative advantage.

C.Most consumers will find the good their optimal choice.

D.The good is scarce.

E.The production of the good will have a constant opportunity cost.

Country X allows market forces to guide its economy. However, it does regulate some transactions and has set a minimum wage for workers. What kind of economy does this country have?

A.Centralized

B.Command

C.Market

D.Mixed

E.Private

Matilda is offered a free, all-expenses paid trip that would require missing a full four days of work. Her optimal choice must

A.consider only the cost of the trip if she had to pay for it herself

B.include the marginal utility of each individual day of the trip

C.compare the total benefits of the trip with the income given up

D.include the cost of paying for a friend to take the trip with her

E.consider other trade-off activities for the time away from her job

On a production possibilities curve (PPC), what does an inward shift imply?

A.There has been an increase in technologies or resources.

B.Government has increased its intervention in trade.

C.Inputs and outputs have become imbalanced to the point of inefficiency.

D.Trade has decreased to allow the market to reach maximum efficiency.

E.A shortage of workers has decreased the output of production.

On a production possibilities curve (PPC), an improvement in the state of technology affecting all goods would signify what type of shift?

A.A shift beyond the vertical axis

B.A shift beyond the horizontal axis

C.An inward shift

D.An outward shift

E.No shift at all

Country Q can produce 15 pairs of socks and 5 belts in one hour. Country Z can produce 20 pairs of socks and 20 belts in one hour. Which of the following terms of trade would be mutually beneficial to both countries?

A.1 belt for 2 pairs of socks

B.1 pair of socks for 2 belts

C.2 belts for 2 pairs of socks

D.1 belt for 5 pairs of socks

E.5 pairs of socks for 15 belts

In the country Gamma it takes 6 hours to produce one automobile and 1 hour to produce a bale of cotton. In the country Delta it takes 10 hours to produce one automobile and 2.5 hours to produce a bale of cotton. Which of the following is true?

A.The countries cannot benefit from specialization and trade.

B.Delta has an absolute advantage in producing cotton and a comparative advantage in producing automobiles.

C.Delta has an absolute advantage in producing both automobiles and cotton.

D.Gamma has an absolute advantage in producing both goods and a comparative advantage in producing cotton.

E.Gamma would benefit from trading between 6 automobiles for one bale of cotton.

A consumer purchases a vehicle that gets very few miles per gallon and realizes that a significant portion of his income is going to gasoline. Which of the following statements accurately represents marginal analysis?

A.The consumer should ignore the cost of purchasing the vehicle because the money has already been spent.

B.The consumer should consider getting adequate benefit for the purchase price of the vehicle.

C.The consumer should evaluate whether it was wise to buy the vehicle.

D.The consumer should lower his weekly driving miles until the marginal cost is less than the marginal benefit.

E.The consumer should give car rides to his neighbors until the marginal benefit of owning the car is greater than the marginal cost.