Question 1:

tommy uses sand to make glass that he sells to a window manufacturing company. the sand is an example of

land (my choice)

entrepreneurship

labor

capital

question 2:

which of the following reasons for starting a business is most closely associated with profit motive?

a financial adviser opens a storefront designed to provide credit counseling for those needing .

a computer programmer hopes to design games that can benefit children with speech impediments.

a contractor starts a new home building business with the expectation of making $500,000 in his first year of business. (my choice)

a baker re-opens the store her grandfather first opened. she is excited to carry on his legacy in the town.

question 3:

economics is a social science devoted to the study of

politics and money

events of the past

how people allocate scarce resources within an economic system (my choice)

the interactions of people and societies within a country

question 4:

opportunity cost is best described as

sum of all production costs

the most expensive resource used in production

value of the next best alternative foregone when a choice is made (my choice)

monetary value of all alternatives foregone when a choice is made

question 5:

carrie has to decide between going to a football game or going to the movies. she decides to go the football game. which of the following is her opportunity cost?

the cost of the football game ticket.

missing the opportunity to go to the movies.

the opportunity to see her friends at the football game. (my choice)

the cost of popcorn at the movies.

question 6:

using the concepts of marginal analysis, what decision would you make when marginal benefit is less than the marginal cost?

close the business because it is now making losses

do not produce the additional unit

decrease production (my choice)

produce more output

question 7:

jamie must decide whether to buy a new truck. he concludes the costs of buying the truck are greater than the benefits. in jamie’s case, buying the truck would be

a productive choice

an irrational economic decision

an opportunity cost (my choice)

a rational economic decision

question 8:

which of the following is the best example of labor investment for a retail store?

renting land for the building

hiring sales clerks and managers (my choice)

buying cash registers and displays

the owner of the store interviewing a clerk

question 9:

in some areas of the world, some people must walk over a mile to get access to water.

this statement best supports which economic concept?

allocation

incentive

shortage

scarcity (my choice)

question 10:

phil has a barber shop. which of the following is an example of capital at his shop?

scissors and combs

bud, a worker

phil, the owner (my choice)

water