Content Domain I: Fundamental Economics Concepts (Part 1) Question Preview (ID: 10755)

This Domain (unit) Covers The Following Concepts: 1)Scarcity And Opportunity Cost 2)Comparison Of Marginal Benefit And Marginal Costs 3)Benefits Of Specialization 4) Types Of Economic Systems 5) Role Of Regulatory Agencies 6) Investment And Econom. TEACHERS: click here for quick copy question ID numbers.

The market for labor would be considered
a) product market
b) factor market
c) wage market
d) monopolistic market

Which of the following economic systems is BEST at providing incentives to produce?
a) traditional
b) command
c) market
d) mercantilist

Which of the following BEST explains why mechanical engineers are paid more than janitors?
a) Engineers make more money for a firm and are in shorter supply.
b) Engineers are more educated than janitors.
c) Engineers do mental work but janitors do physical work.
d) Engineers work longer hours than janitors.

Belinda has a business making steel ornamental lawn statues. The machine she uses to join pieces of steel together is considered.....
a) human capital
b) entrepreneurship
c) labor
d) capital

Which of the following is an important reason why people need financial investment plans?
a) to know where to purchase goods
b) to save for retirement
c) to gain simple rather than compound interest
d) to lower their credit score

Which of the following is a problem MOST often associated with command economies?
a) Public goods are underproduced.
b) Goods consumers want are oversupplied while goods consumers don't want are undersupplied.
c) There is a huge income disparity between the richest and poorest citizens.
d) High unemployment rates results.

In a market economy, what is the PRIMARY motivation for producers to sell their products at a price consumers can afford?
a) patriotism
b) sense of duty
c) profit
d) fear of government regulations

Which of the following is considered a negative side effect of a minimum wage?
a) full employment
b) increased interest rates
c) unemployment
d) failure to meet equilibrium production

In a market economy, if there is NOT A PRICE at which both producers are willing to make an item and consumers are willing to buy the item, then
a) it will not be made
b) the seller will always cut the price
c) the buyer will always accept a higher price
d) the government will subsidize the product

Which of the following would consumers MOST OFTEN need to consider when trying to make a rational economic decision?
a) the impact of government subsidies
b) potential opportunity costs
c) factors of production
d) net exports

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