Which of the following statements best defines the term economics?Economics is the study of the production and distribution of goods and services.Economics is the study of government programs supporting peace treaties.Economics is the study of money.Economics is the study of relationships among society.2.Which of the following would an economist say motivates a man who builds chairs and sells them to thepublic?greedself-interestlaw of diminishing returnslaissez faire3.Adam Smith is known as the father of economics because he developed a theory thatpromotes the idea that people care too much about the needs of society.helps economists to study the effects of pollution on economic systems.explains population growth and its impact on deteriorating resources.links unintended consequences and their impact on how society functions.4.While shopping you discover that your favorite department store has lowered the price on a new MP3player that you wanted to buy. You rush into the store, only to find that they are sold out. This scenarioillustrates the concept oflaissez faire.law of diminishing returns.shortage.scarcity.5. Which of the following examples of factors of production will cause a decrease in the production ofwheat?poor soil nutritionan increase in irrigationa more efficient tractorthe addition of more farm employees6.A new Japanese restaurant opens two blocks from your home. The owner, Reiko, is a personal friend ofyours. You don’t particularly like Japanese food, but you decide to go anyway, there is nothing on themenu that sounds appealing. Unfortunately, it turns out that most of the people in your town don’t likeJapanese cuisine either. Reiko confides that business is not good, but she isn’t sure what to do from aneconomic standpoint. Which of the following would most likely describe Adam Smith’s perspective onthis problem?Reiko should close the restaurant and find a different career.Reiko should lay off workers and do everything herself to save money.Reiko should add other ethnic foods to the menu and offer discounts to attract more people to herrestaurant.Reiko should ask the government for assistance.7.People must make choices because the amounts of resourcesare unlimited.are limited.remain unchanged.are undetermined.8.Which of the following is not an economic right or responsibility?deciding where to livechoosing an occupationpaying taxesgiving donations to a charity 9.When someone makes a choice, all the other alternatives that are given up by making that choice arecalledopportunity costs.cast-offs.diminishing costs.trade-offs.10.The most attractive trade-off as the result of a decision is called a(n)opportunity cost.ultimate trade-off.diminishing cost.cast-off.11.Scarcity is not usually a problem in economics.TrueFalse12.Scarcity and shortage mean the same thing.TrueFalse13.Physical capital is known as human-made objects such as the sewing machine.TrueFalse14.Land, labor, and entrepreneurship are the three factors of production. TrueFalse15.Production possibilities graphs can show the effects of industrialization on the location of civilizations.TrueFalse16.Using the factors of production to produce one item means there are fewer resources to use in theproduction of another.TrueFalse17.Any intersection of points inside the line (to the left of the line) on a production possibilities graph wouldshow that the economy is underutilizing its resources.TrueFalse18.The law of diminishing returns states that as countries produce less of one product and more of another,there is an increase in the resources needed to expand production of the second product.TrueFalse19.Any intersection of points on a production possibilities graph that is outside the frontier (to the right ofthe line) shows that the economy is growing due to an increase of resources.TrueFalse 20.Production possibilities graphs are a good way to show trade-offs.TrueFalse21.In an answer of at least two well-developed paragraphs, compare the concepts of scarcity and shortage,and provide an example of each. 22.All of society competes for the limited resources that are available. In an answer of at least two welldeveloped paragraphs, describe four common methods countries use for allocating resources and explainhow each addresses the issue of competition between members of society. 23.Answer both parts of this question for full credit.Part 1: Economists are fond of saying ",there is no such thing as a free lunch.", From an economist’sperspective, in at least two well-developed paragraphs, explain what this statement means. Be sure toexplain how situations like this include choices and trade-offs, and include an example.Part 2: From a consumer’s perspective, in at least one well-developed paragraph, describe how consumerrights can be overlooked. 24.The ABC Company executives decide that they will begin to produce more gidgets than gadgets. Theypreviously had been producing 500,000 gadgets per year and only 300,000 gidgets. Yet they noticed thatat the end of the year, there were still 100,000 gadgets left on the shelves and no gidgets.a. In an answer of at least one paragraph, explain why the company would want to produce more gidgetsbased on this market data.b. In an answer of at least one paragraph, explain why the ABC Company’s decision involves a trade-offand identify what the trade-off is. 25.You are faced with a dilemma. You want very much to go to the park with your friends and hang out.However, your mother left you firm instructions to clean your bedroom. Her final words were ",or else!",Create a decision-making grid similar to the one you learned about in this unit. Then decide which wouldbe the best use of your time. Make a choice as to which you will do. Submit both your grid and anexplanation (at least one paragraph in length) in which you explain how you have decided to use yourtime and why you made that particular choice. 26.A new Japanese restaurant opens two blocks from your home. The owner, Reiko, is a personal friend ofyours. You don’t particularly like Japanese food, but you decide to go anyway, however, there is nothingon the menu that sounds appealing. Unfortunately, it turns out that most of the people in your town don’tlike Japanese cuisine either. Reiko confides that business is not good, but she isn’t sure what to do from aneconomic standpoint. Which of the following would most likely describe Adam Smith’s perspective onthis problem?
Originally posted 2018-07-10 21:53:17. Republished by Blog Post Promoter