Multiple Choice
Identify the choice that best completes the
statement or answers the question.
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1.
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Which of the following makes someone an entrepreneur?
a. | earning a lot of money as a computer programmer | b. | becoming a highly
paid dancer | c. | running a service that hires people to install sprinkler systems in
lawns | d. | inventing and selling the rights to manufacture a computer
game |
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2.
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A country’s production possibilities increase because the available
workers become more skilled at using a computer. This is an example of growth caused by
a. | global resources | c. | technology | b. | physical capital | d. | production
opportunity |
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3.
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Which of the following is an example of scarcity, rather than shortage?
a. | A popular toy is sold out during the busy holiday season. | b. | You have spent your
last penny and payday is a week away. | c. | A person wants an endless supply of everything
but cannot have it. | d. | Gasoline was rationed in America during World
War II. |
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4.
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The physical capital used by a woodworker to make furniture would include
a. | saws and drills. | c. | hard work and time. | b. | wood and glue. | d. | a workshop and
money. |
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5.
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Human capital includes
a. | the salary paid to an accountant. | b. | a taxi driver’s knowledge of the city
streets. | c. | the machinery used to weave cloth. | d. | the equipment used by a doctor to cure a
patient. |
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6.
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What could cause a production possibilities curve to move down and to the
left?
a. | A nation loses land after being defeated in a war. | b. | A baby boom 20 years
ago resulted in a large number of young adults in the population today. | 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. |
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7.
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What can cause a production possibilities curve to move to the right?
a. | Thousands of people move out of the country. | b. | A new invention
lowers the cost of production. | c. | An epidemic kills thousands of young men and
women. | d. | The population is growing increasingly old. |
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Matching
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Identifying Key Terms
Match each term with the correct
statement below. a. | efficiency | g. | shortage | b. | goods | h. | opportunity cost | c. | trade-off | i. | underutilization | d. | production
possibilities graph | j. | labor | e. | scarcity | k. | factors of production | f. | services |
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8.
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actions or activities that one person performs for another
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9.
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physical objects that can be exchanged
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Identifying Key Terms
Match each term with the correct
statement below. a. | factors of production | g. | growth | b. | production
possibilities frontier | h. | opportunity cost | c. | production possibilities
graph | i. | underutilization | d. | trade-offs | j. | efficiency | e. | shortage | k. | services | f. | scarcity |
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10.
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land, labor, and capital
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