POB Objective 1.01

Question 1

Question

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?

Answer

Consumer spending
GDP (Gross Domestic Product)
Investment Activities
Labor Activities

Question 2

Question

The formula that is generally used to measure productivity is:

Answer

outputs divided by inputs.
labor divided by resources.
goods divided by time.
inputs divided by labor.

Question 3

Question

All of the following are examples of enhancing productivity except:

Answer

Specialization/Division of Labor
Mass production
Unsafe working conditions
Increased capital investment

Question 4

Question

Hindrances to productivity include all of the following except:

Answer

Lack of communication
Lack of standardization
Poor design
Training and education

Question 5

Question

Factors of production are:

Answer

Inputs that are used in production
Products produced by labor
Human resources only
Not necessary

Question 6

Question

The most importance factor of production is:

Answer

Capital
Humans
Time
Land

Question 7

Question

What is the difference between a need and a want?

Answer

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.

Question 8

Question

An economic want is:

Answer

something a person has to give up something to attain something else
doesn't cost money
loving your family
listening to a mentor

Question 9

Question

The desire for which item(s) would be considered a non-economic want?

Answer

House
Nutritious food
A walk
New clothing

Question 10

Question

Which occurs when the supply of individuals who are able and willing to work diminishes?

Answer

Capital goods become unlimited.
Capital goods become limited.
Human resources become limited.
Human resources become unlimited.

Question 11

Question

A local car repair shop that rotates tires and changes oil is selling:

Answer

industrial supplies.
specialty goods.
tangible items.
consumer services.

Question 12

Question

Equilibrium price of a good or service is determined by trial and error and exists when:

Answer

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.

Question 13

Question

An example of an industrial good is:

Answer

Handle bars used in producing a bicycle
A car
A haircut
A flight

Question 14

Question

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?

Answer

Human resource
Capital resource
Natural resource
Service

Question 15

Question

Jane's Steakhouse offers several dishes that may include whole wheat, corn, or beef. Which type of resource is included in the dishes?

Answer

Human
Capital
Natural
Service

Question 16

Question

Which is an example of scarcity?

Answer

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.

Question 17

Question

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:

Answer

distribution.
opportunity cost.
efficiency.
utility.

Question 18

Question

After an employee collects the necessary facts, what is the next step that an employee should take to solve a problem?

Answer

analyze the information
define the problem
act on assumptions
make a decision

Question 19

Question

Eddie decided he would use real butter for his baked goods. Which economic question does this address?

Answer

What to produce?
How to produce?
For whom?
When to produce?

Question 20

Question

In a private enterprise economic system, the interaction of supply and demand primarily determines:

Answer

government regulation.
economic choices.
the extent of pollution.
product prices.

Question 21

Question

Who decides how goods and services will be marketed in a private enterprise economic system?

Answer

legislators
business people (companies)
competitors
consumers

Question 22

Question

A major characteristic of a market economy is which type of ownership of property?

Answer

monopolistic
limited
government
private

Question 23

Question

Countries whose governments provide citizens with free medical care, education, and other benefits often are referred to as which type of state?

Answer

Military
Capitalist
Consumer
Welfare

Question 24

Question

Which is a problem associated with communist command economies?

Answer

There is no competition.
There are high taxes.
Supply and demand control what will be produced.
Individuals run the risk of losing their businesses.

Question 25

Question

When talking to an individual with a director personality type:

Answer

Slow down; be friendly
Give them time to think and analyze
Show enthusiasm and smile
Get to the point and be direct

Question 26

Question

A killing frost destroys 80% of Florida's citrus crop. This will most likely create:

Answer

a seller's market.
pure competition.
a buyer's market.
inelastic demand.

Question 27

Question

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?

Answer

Buyer's market
Seller's market
Automotive
Discount

Question 28

Question

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?

Answer

Elastic
Inelastic
Consumer
Producer

Question 29

Question

Which is an example of a monopoly?

Answer

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.

Question 30

Question

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?

Answer

Relative pricing
Rationing
Supply and Demand
Substitution effect

Next up

POB Objective 1.01

Description

Resource summary

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

Question 7

Question 8

Question 9

Question 10

Question 11

Question 12

Question 13

Question 14

Question 15

Question 16

Question 17

Question 18

Question 19

Question 20

Question 21

Question 22

Question 23

Question 24

Question 25

Question 26

Question 27

Question 28

Question 29

Question 30

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	Created by Tara McDonald about 4 years ago