Chapter 1 8) When Bob, a recent college grad, took an internship at an accountin
ID: 1218485 • Letter: C
Question
Chapter 1 8) When Bob, a recent college grad, took an internship at an accounting firm, he is accumulating which factor of production? A) physical capital B) human capital C) entrepreneurship D) natural resources 12) ________ is a situation in which resources are limited in quantity and can be used in different ways. A) Choice B) Scarcity C) Economics D) Supply and demand 21) Which of the following is not an economic decision in a modern economy? A) Who consumes the products produced? B) What will be produced? C) Where will the products produced be consumed? D) How will we produce it? Chapter 2 7) Mark quit his job as a salesman where he made $43,000 per year to start his own t-shirt making business. His business expenses are $6,000 per year on rent, $12,000 per year on supplies, and $4,000 per year on part-time help. As for his personal expenses, his apartment costs him $4,800 per year and his personal bills are an extra $1,200 per year. What is Mark's opportunity cost of running the business? A) $65,000 B) $57,000 C) $71,000 D) $43,000 15) Suppose that you own a house. What is the opportunity cost of living in the house? A) There is no opportunity cost because you own the house. B) There is no opportunity cost unless you could set up a business in the house. C) The opportunity cost is the rent you could have received from a tenant if you didn't live there. D) The opportunity cost is the cost of your monthly mortgage payment plus bills. 34) Figure 2.2 presents a production possibilities curve for a country that can either produce highways or provide people with medical care in a given year. The opportunity cost of the fourth new highway built in a year is: A) less than the opportunity cost of the third new highway. B) the same as the opportunity cost of the third new highway. C) greater than the opportunity cost of the third new highway. D) the sum of the opportunity costs of the first three highways built. Chapter 3 1) The ability of one person or nation to produce a good at a lower opportunity cost than another is called a(n): A) market advantage. B) comparative advantage. C) absolute advantage. D) specialization advantage. 1) In modern economies, individuals in markets make most of the decisions about: A) what to produce. B) how to produce. C) for whom to produce. D) all of the above 5) The decrease in the scarcity of a product usually results in: A) an increased number of sizes. B) more colors being available. C) lower prices. D) more stores selling the product. 9) Insurance: A) specifies the term of exchange facilitating exchange between strangers. B) reduces the risk of entrepreneurs. C) provides the public with reliable information about the performance of a firm. D) increases the risk faced by entrepreneurs.
Explanation / Answer
When Bob, a recent college grad, took an internship at an accounting firm, he is accumulating which factor of production? A) physical capital B) human capital C) entrepreneurship D) natural resources
Answer is B-HUMAN CAPITAL
________ is a situation in which resources are limited in quantity and can be used in different ways. A) Choice B) Scarcity C) Economics D) Supply and demand
Answer is B-SCARCITY
Which of the following is not an economic decision in a modern economy? A) Who consumes the products produced? B) What will be produced? C) Where will the products produced be consumed? D) How will we produce it?
Answer is C- Where will the products produced be consumed?
Mark quit his job as a salesman where he made $43,000 per year to start his own t-shirt making business. His business expenses are $6,000 per year on rent, $12,000 per year on supplies, and $4,000 per year on part-time help. As for his personal expenses, his apartment costs him $4,800 per year and his personal bills are an extra $1,200 per year. What is Mark's opportunity cost of running the business? A) $65,000 B) $57,000 C) $71,000 D) $43,000
Answer is A-$65,000
Suppose that you own a house. What is the opportunity cost of living in the house? A) There is no opportunity cost because you own the house. B) There is no opportunity cost unless you could set up a business in the house. C) The opportunity cost is the rent you could have received from a tenant if you didn't live there. D) The opportunity cost is the cost of your monthly mortgage payment plus bills.
Answer is C- The opportunity cost is the rent you could have received from a tenant if you didn't live there
Figure 2.2 presents a production possibilities curve for a country that can either produce highways or provide people with medical care in a given year. The opportunity cost of the fourth new highway built in a year is: A) less than the opportunity cost of the third new highway. B) the same as the opportunity cost of the third new highway. C) greater than the opportunity cost of the third new highway. D) the sum of the opportunity costs of the first three highways built.
Answer is C- greater than the opportunity cost of the third new highway
The ability of one person or nation to produce a good at a lower opportunity cost than another is called a(n): A) market advantage. B) comparative advantage. C) absolute advantage. D) specialization advantage.
ANSWER is B comparative advantage
In modern economies, individuals in markets make most of the decisions about: A) what to produce. B) how to produce. C) for whom to produce. D) all of the above
ANSWER is D All of the above
The decrease in the scarcity of a product usually results in: A) an increased number of sizes. B) more colors being available. C) lower prices. D) more stores selling the product
ANSWER is C Lower prices
Insurance: A) specifies the term of exchange facilitating exchange between strangers. B) reduces the risk of entrepreneurs. C) provides the public with reliable information about the performance of a firm. D) increases the risk faced by entrepreneurs
ANSWER is B reduces the risk of entrepreneurs
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