Econ FBLA Test 2 - WRC 2008 ECONOMICS Multiple Choice:...

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WRC 2008 ECONOMICS Multiple Choice: Choose the best answer to each of the following. 1. Which of the following represent a market? a. a person buying spark plugs at an auto parts store b. the owner of a used car business buying cars to sell to customers c. phone order for a new carburetor from a wholesaler d. all of the above 2. In a voluntary exchange between two people or businesses, a. one trader’s gain is the other’s loss b. both traders lose more than they gain c. both traders expect to benefit as a result of the exchange d. no one gains or loses 3. In a market economy, thorough, detailed information about the production and distributions of computer chips a. is concentrated in a small team of computer expects in Silicon Valley b. is spread among hundreds of individuals in a variety of businesses who may not even know each other c. is published by the U.S. government d. is classified as “Top Secret” by the federal government 4. The major problem facing all economic systems is related to a. their production possibilities frontier b. the factors of production c. scarce resources d. technology 5. What are the three factors of production? a. profits, price, and markets b. natural, human, and capital c. economic wants, scarcity, and entrepreneurship d. goods, services, and capital 6. When economists refer to capital resources, they are describing a. money in banks b. factories, equipment, and machinery used for producing goods and services c. fertile soil, mineral deposits, forests and similar sources of raw materials d. the workers and manager who produce goods and services 7. Which of the following is an example of an incentive? a. patriotism b. good health c. wages d. all of the above 8. Which statement describes the critical role played by profits in a market economy? a. profits encourage business to efficiently produce the things people want b. profits tell government planners how much consumers are spending c. profits are the largest part of a nation’s total income d. all of the above
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9. Which of the following is necessary for a market economy? a. government ownership of property b. private ownership of resources c. government regulation of resource use d. corporate control of market competition 10. Amal is a mechanic who owns his own business shop in Houston. a. Amal has an incentive to use his tools and equipment carefully and productively b. Since he owns his shop and has already paid for his tools, Amal has no incentive to use them carefully and productively in the future c. both a and b d. neither a nor b 11. In a market economy, prices provide information to consumers. This means that prices a. identify goods that are not scarce b. inform the government what goods it should order to be produced c. tell households which products to buy d. often tell businesses the value consumers place on different goods 12. In a market economy, prices provide important information. This means that if eager consumers bid up the price of submarine sandwiches,
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This note was uploaded on 10/14/2011 for the course ECON 2106 taught by Professor Banzhaf during the Fall '06 term at Georgia State University, Atlanta.

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Econ FBLA Test 2 - WRC 2008 ECONOMICS Multiple Choice:...

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