If an economist (person that studies the economy) researches annually the total value of homes built, this information would be useful for which measurement of economic activities?
Consumer spending
GDP (Gross Domestic Product)
Investment Activities
Labor Activities
The formula that is generally used to measure productivity is:
outputs divided by inputs.
labor divided by resources.
goods divided by time.
inputs divided by labor.
All of the following are examples of enhancing productivity except:
Specialization/Division of Labor
Mass production
Unsafe working conditions
Increased capital investment
Hindrances to productivity include all of the following except:
Lack of communication
Lack of standardization
Poor design
Training and education
Factors of production are:
Inputs that are used in production
Products produced by labor
Human resources only
Not necessary
The most importance factor of production is:
Capital
Humans
Time
Land
What is the difference between a need and a want?
Wants are necessary for survival; needs are comfort materials.
Needs are necessary for survival; wants add comfort.
Needs and wants are the exact same.
Wants are food, water, and shelter.
An economic want is:
something a person has to give up something to attain something else
doesn't cost money
loving your family
listening to a mentor
The desire for which item(s) would be considered a non-economic want?
House
Nutritious food
A walk
New clothing
Which occurs when the supply of individuals who are able and willing to work diminishes?
Capital goods become unlimited.
Capital goods become limited.
Human resources become limited.
Human resources become unlimited.
A local car repair shop that rotates tires and changes oil is selling:
industrial supplies.
specialty goods.
tangible items.
consumer services.
Equilibrium price of a good or service is determined by trial and error and exists when:
research shows what the market will tolerate.
the amount supplied is equal to the amount demanded.
businesses total their costs and markup.
businesses compute the average selling price in the area.
An example of an industrial good is:
Handle bars used in producing a bicycle
A car
A haircut
A flight
Revlon Incorporated purchased new machines that will automatically squeeze the appropriate amount of shampoo into different size bottles. What types of economic resources are the machines?
Human resource
Capital resource
Natural resource
Service
Jane's Steakhouse offers several dishes that may include whole wheat, corn, or beef. Which type of resource is included in the dishes?
Human
Natural
Which is an example of scarcity?
There is a limited amount of water supply in parts of Africa.
The United States consumes more beef than any other country.
A long walk.
There are churches on every corner in the United States.
A farmer has 1,000 acres. He decides to plant apple trees on 800 acres and raise cows on the remaining 200 acres. If he wanted to raise more cows, he would have to reduce the amount of land allotted to growing apples. This is an example of:
distribution.
opportunity cost.
efficiency.
utility.
After an employee collects the necessary facts, what is the next step that an employee should take to solve a problem?
analyze the information
define the problem
act on assumptions
make a decision
Eddie decided he would use real butter for his baked goods. Which economic question does this address?
What to produce?
How to produce?
For whom?
When to produce?
In a private enterprise economic system, the interaction of supply and demand primarily determines:
government regulation.
economic choices.
the extent of pollution.
product prices.
Who decides how goods and services will be marketed in a private enterprise economic system?
legislators
business people (companies)
competitors
consumers
A major characteristic of a market economy is which type of ownership of property?
monopolistic
limited
government
private
Countries whose governments provide citizens with free medical care, education, and other benefits often are referred to as which type of state?
Military
Capitalist
Consumer
Welfare
Which is a problem associated with communist command economies?
There is no competition.
There are high taxes.
Supply and demand control what will be produced.
Individuals run the risk of losing their businesses.
When talking to an individual with a director personality type:
Slow down; be friendly
Give them time to think and analyze
Show enthusiasm and smile
Get to the point and be direct
A killing frost destroys 80% of Florida's citrus crop. This will most likely create:
a seller's market.
pure competition.
a buyer's market.
inelastic demand.
A local dealership purchased 100 blue pickup trucks, but has only been able to sell three in the past five months. Because of the low demand for these trucks, the dealer has been forced to lower the sticker prices, creating which type of market for blue pickup trucks?
Buyer's market
Seller's market
Automotive
Discount
Due to the the increase in population in the U.S., construction companies have had to clear thousands of acres of land making trees scarce. The price of toilet paper has increase tremendously, and consumers are still demanding toilet paper regardless of the price. What type of demand is the toilet paper?
Elastic
Inelastic
Producer
Which is an example of a monopoly?
Pepsi and Coca Cola compete head to head for consumer loyalty.
Pizza Inn and Papa John's Pizza try to win customers based on price competition.
There are many vehicle repair shops to choose from in Rocky Mount, NC.
Rocky Mount Public Utilities is the only utility company consumers can use to power their homes.
Which function of pricing includes the economic understanding that as prices rise — or income decreases — consumers will replace more expensive items with less costly alternatives?
Relative pricing
Rationing
Supply and Demand
Substitution effect
