answer these multiple chooice questions: The fundamental economic questions are what to produce, _____, and for whom. The fundamental economic questions are what to produce, _____, and for whom. When All of these are correct How
Sure! Here are the answers to your multiple-choice questions based on the context and typical economic principles:
1. The fundamental economic questions are what to produce, **How**, and for whom.
2.
1. The opportunity cost from moving Point A to Point B is **10 books.** (From 50 books to 40 books)
2. The opportunity cost from moving from Point C to Point F is **30 bicycles.** (From 30 bicycles to 0 bicycles)
3. If all resources are used to make bicycles, **100 bicycles** would be produced.
3. Which of these is the best example of diminishing marginal utility?
- **Someone who has one bicycle will have less use for another.**
4. Capitalism is another term used to describe the Market Economy.
- **True**
5. I was supposed to be home by 10 pm, but the movie wasn’t over. I decided it was worth it to be 20 minutes late.
- **Cost vs Benefit**
6. When supply exceeds demand, prices rise.
- **False**
7. The difference between Shortage and Scarcity is that ONLY Scarcity causes inflation.
- **False**
8. TINSTAAFL means:
- **there's always a cost to any decision.**
9. The economy of the U.S. can best be described as a _______________.
- **Mixed Economy**
10. Adam Smith wrote:
- **The Wealth of Nations**
11. What are things required for survival?
- **Needs**
12. During the holiday season, all the XBox and Play Station games were sold out.
- **Shortage**
13. What does it mean to say that free markets are efficient?
- **Buyers and sellers trade until both are satisfied.**
14. Driven by supply and demand, with no government intervention:
- **Market Economy**
15. Because people have unlimited wants and limited resources, they
- **Must make choices**
16. In order to make this decision, which of the following did you need to think about?
- **Opportunity cost**
17. What are the factors of production?
- **land, labor, entrepreneur, and capital**
18. Because of _______ people must make choices, and when they choose, they incur a(n) _________.
- **Scarcity; Opportunity cost**
19. Because of Covid Truck Drivers were too sick to deliver products to Walmart. Consumers were left in the store without bleach.
- **Shortage**
20. What is government’s role in a pure market economy (invisible hand theory)?
- **To stay out of economic activity altogether**
21. Which of the following would NOT be considered an incentive to do your homework?
- **Homework is practice and does not affect your overall grade.**
22. The goal of entrepreneurs is to make:
- **profit**
23. My parents gave me $50 for my birthday. I wanted a new pair of shoes and a new sweater, but I could not afford both. I chose the shoes.
- **Scarcity Forces Trade Offs**
24. Most Democratic countries have a Mixed Economy.
- **True**
25. Utility means the total satisfaction derived from a good or service.
- **TRUE**
26. Newly discovered Michael Jackson recordings are released to an auction house for sale. Recordings are expected to bring up to $10 million each.
- **Scarcity**
27. What is an opportunity cost?
- **The most valued opportunity you give up when making a choice.**
28. Which statement is the best example of how diminishing marginal utility impacts our decisions as consumers?
- **John has six shirts and is trying to decide the value of buying a seventh.**
29. When I shop online at amazon.com, I’m able to select from many vendors at one time.
- **Market Facilitates Trade**
30. Unattainable Production occurs __________ the Production Curve.
- **outside**
31. A Command Economy is based on agriculture, fishing, and hunting, and relies on cultural beliefs and ideologies.
- **False**
32. The reduction of prices represents which economic theory?
- **Invisible Hand**
33. I’ve studied 3 hours for my economics test. If I study just one more hour, how much will it help?
- **Thinking at the Margin**
34. What is her opportunity cost?
- **Finishing the book**
35. Adam Smith is considered the Father of " ____________"
- **Capitalism**
36. What is the first step in the PACED decision-making process?
- **Define the problem**
37. You will normally make a choice if you expect the marginal benefits to be greater than the marginal costs.
- **True**
38. In economics, why must consumers, businesses, and governments make choices?
- **There is a scare amount of resources**
39. Why does scarcity exist?
- **There are not enough resources to produce everyone’s wants.**
I hope this helps! If you have any further questions or need clarification on any of the answers, feel free to ask.