Question

chapter 1 test
multiple choice
identify the choice that best completes the statement or answers the question.

1. actions in one part of the country or world that have an economic impact on what happens elsewhere are examples of

a. opportunity costs.
b. specialization.
c. trade - offs.
d. economic interdependence.

1. manufactured goods needed to produce other goods and services are called

a. gross domestic product (gdp).
b. consumer goods.
c. capital goods.
d. nondurable goods.

1. what is the worth of a good or service that can be expressed in dollars and cents?

a. opportunity cost
b. value
c. wealth
d. trade - off

1. consumers are powerful because

a. they drive decisions about what to produce.
b. they have more rights than corporations.
c. they help decide a business’s opportunity costs.
d. their interests force producers to behave ethically.

1. societies are faced with which three basic questions about the production of goods?

a. what, how, and why
b. what, where, and when
c. when, where, and for whom
d. what, how, and for whom

1. what would a business use to decide whether a certain action is worth the cost?

a. production possibility comparision.
b. needs assessment.
c. circular flow model.
d. cost - benefit analysis.

1. some necessities have little value while some non - necessities have a much higher value is known as

a. paradox of value.
b. opportunity cost.
c. trade - offs.
d. economic interdependence.

1. dave gets a job at a grocery store, which pays him an hourly wage in exchange for his labor. dave is participating in

a. human capital.
b. entrepreneurship.
c. the product market.
d. the factor market.

photograph here
what economic concept is represented by the photograph above?
a. specialization
b. scarcity
c. wealth
d. opportunity cost?

Explanation:

Question 1

Economic interdependence refers to how actions in one region affect others economically. Opportunity cost is the cost of the next best alternative, trade - offs are choices, and specialization is focusing on a task. So the correct answer is related to economic interdependence.

Capital goods are manufactured goods used to produce other goods/services. GDP is a measure of economic activity, consumer goods are for direct consumption, and nondurable goods are short - lived. So the answer is about capital goods.

Value is the worth of a good/service in monetary terms. Opportunity cost is a trade - off, wealth is total assets, and trade - off is a choice. So the answer is value.

Answer:

d. economic interdependence

Question 2