Test Bank - Economics Principles and Practices by Glencoe -Latest with ALL Chapters and Topics Covered.|Questions and Elaborated Answers|

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Test Bank - Economics Principles and Practices by Glencoe -Latest with ALL Chapters and Topics Covered.|Questions and Elaborated Answers|Sample Questions: Scarcity is a condition that exists when A... ) there is a fixed supply of resources. B) there is a large demand for a product. C) resources are not able to meet the entire demand for a product. D) All of the above1) Among of what is listed below is an example of Explain how the question of "what goods and services to produce?" is Correct Answered by the command process? A) Country’s government subsidies for affordable housing B) laws regarding equal opportunity in employment C) Country’s government allowance for the deduction of interest payments on private mortgages D) Country’s government regulations concerning the dumping of industrial waste Correct Answer: A Opportunity cost is best defined as A) the sum given up when choosing one activity over all other alternatives. B) the sum given up when choosing one activity over the next best alternative. C) the opportunity to earn a profit that is greater than the one currently being made. D) the sum that is given up when choosing an activity that is not as good as the next best alternative. Correct Answer: B In a Trading place economy, Among of what is listed below is the most important guide affecting scarcity? A) the needs and wants of consumers B) the price of the product C) the degree to what the Country’s government is involved in the allocation of resources. D) All of the above are equally important. Correct Answer: A Among of what is listed below is not considered by economists to be a basic resource or guide of manufacturing ? A) money B) machinery and equipment C) technology D) unskilled labor Correct Answer: A Select the group that best represents the basic guides of manufacturing . A) land, labor, capital, entrepreneurship B) land, labor, money, management skills C) land, natural resources, labor, capital D) land, labor, capital, technology Correct Answer: A What of the statements below best illustrates the use of the Trading place process in determining theallocation of scarce resources? A) "Let's make this product because this is what we know Explain how to do best." B) "Although we're currently making a profit on the products we make, we should consider shifting to products where we can earn even more money." C) "Everyone is opening video stores, why don't we?" D) "We can't stop making this product. This product gave our company its start." Correct Answer: B Among of what is listed below is the best example of "what goods and services should be produced?" A) the use of a capital intensive versus a labor intensive process of manufacturing textiles B) the manufacturing of army helicopters versus the manufacturing of new commercial jet aircraft C) the manufacturing of computer workstations in Hong Kong or in Germany D) the leasing versus the purchasing of new capital equipment Correct Answer: B Among of what is listed below is the best example of "Explain how should goods and services be produced?" A) adherence to technical specifications in the manufacturing of jet aircraft B) the manufacturing of jet aircraft for the air force or for a commercial airline C) the use of additional full-time workers versus the use of supplementary part-time workers D) the manufacturing of a new manufacturing facility Correct Answer: C Among of what is listed below is the best example of opportunity cost? A) a company's expenditures on a training program for its employees B) the rate of return on a company's investment C) the sum of money that a company can earn by depositing excess funds in a money Trading place fund D) the sum of profit that a company forgoes when it decides to drop a particular product line in favor of another one Correct Answer: D From the standpoint of a soft drink company the question of "What goods and services should be produced?" is best represented by Among of what is listed below decisions? A) whether or not to hire additional workers B) whether or not to increase its advertising C) whether or not to shut down selected manufacturing facilities D) All of the above are examples. E) None of the above are examples. Correct Answer: E Scarcity is a condition that exists when A) there is a fixed supply of resources. B) there is a large demand for a product. C) resources are not able to meet the entire demand for a product. D) All of the above. Correct Answer: C. [Show More]

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