F24_H Econ Unit 1 Test PDF

Student _____________________ Test ID: 197460116030824 Name: Student Description: f24_H. Econ_Unit Instructions: 1 Test 1. 9-12.SSEF1 | 9-12.SSEF1.a | DOK: The study of economics is primarily concerned wit...

Student _____________________ Test ID: 197460116030824 Name: Student Description: f24_H. Econ_Unit Instructions: 1 Test 1. 9-12.SSEF1 | 9-12.SSEF1.a | DOK: The study of economics is primarily concerned with which of the following? A. The fair and equal treatment of all households. B. The development of conclusive answers to public policy issues. C. The allocation of limited resources, given unlimited wants. D. The tracking of the stock market. 2. 9-12.SSEF1 | 9-12.SSEF1.a | DOK: Skills and Concepts How does the concept of scarcity relate to the federal budget process? A. All government decisions are made based on marginal costs and marginal benefits. B. Limited tax revenue must meet unlimited wants and needs. C. Governments must use exchange rates when dealing with foreign policy. D. The government avoids scarcity by printing money. 1 / 15 3. 9-12.SSEF1 | 9-12.SSEF1.a | 9-12.SSEF1.b | DOK: Individuals and societies must make choices regarding which goods and services will be produced and consumed because QuestioIndividuals and societies must make choices regarding which goods and services will be produced and consumed because A. allocating scarce resources efficiently reduces the equal distribution of goods. B. a country cannot have a comparative advantage in the production of all goods. C. unlimited wants can only be satisfied by allocating resources efficiently. D. resources are insufficient to satisfy the unlimited wants of people. 4. 9-12.SSEF1.b | 9-12.SSEF1 | DOK: Recall and Reproduction Lotteries, markets, barter, rationing and redistribution of income are all methods commonly used to A. Allocate scarce resources. B. Collect taxes. C. Improve productivity. D. Invest in education and technology. 2 / 15 5. 9-12.SSEF1 | 9-12.SSEF1.b | 9-12.SSEF3.a | DOK: Which of the following is true in a market economy? A. The prices of goods and services are usually determined by the government. B. The factors of production are allocated according to needs. C. The prices of goods and services are set so that an equitable distribution of private property is achieved. D. Prices serve as incentives for factors of production to be allocated to the places where they are most valued. 6. 9-12.SSEF1 | 9-12.SSEF1.c | DOK: Which of the following is the best example of physical capital? A. A business hiring 10,000 workers at a factory. B. A truck for a delivery company, C. An oven for a family of four. D. A $100,000 business loan from a bank. 7. 9-12.SSEF1.c | 9-12.SSEF1 | DOK: Recall and Reproduction Christie decides to produce and sell apple juice. She leases an apple orchard and renovates her kitchen to produce and bottle the apple juice. Christie hires three employees. Two employees will maintain the apple orchard and bottle the juice, and one will market the apple juice using the Internet. In the manufacture and sale of the apple juice, what factor of production does Christie represent? A. land B. labor C. capital D. entrepreneurship 3 / 15 8. 9-12.SSEF1 | 9-12.SSEF1.d | DOK: When making a decision, the next best alternative is called A. the opportunity cost B. scarcity C. the absolute advantage D. the production possibilities 9. 9-12.SSEF1 | 9-12.SSEF1.d | DOK: Recall and Reproduction Todd is trying to decide whether to take a summer job as a camp counselor or as a farm laborer. The farm laborer pays much better, but the work is also much more demanding and he would have less time off. Which of the following could be considered an opportunity cost of taking the job as a farm laborer? A. the higher wage B. the free time that comes with being a counselor C. exposure to noisy, angry children D. There is no opportunity cost because the wage is higher. 10. 9-12.SSEF1 | 9-12.SSEF1.d | DOK: Which of the following must be true if an individual’s next best alternative to going to the beach is studying for an economics exam? A. They will decide to study for the exam. B. The opportunity cost is seeing their friends at the beach. C. The opportunity cost of going to the beach is being better prepared for the exam. D. The opportunity cost of going to the beach is all the other things they could have done. 4 / 15 11. 9-12.SSEF2 | 9-12.SSEF2.b | DOK: # of Total Oreos Benefit (in utils) 0 0 1 8 2 14 3 19 4 23 5 25 The chart shows the total benefit (in utils) a typical consumer receives when eating Oreos. The cost of each oreo is $5. Which of the following is correct for this individual? A. This person does not experience diminishing marginal utility. B. The marginal benefit of the 4th Oreo is 4 utils. C. This person would eat 5 Oreos. D. The marginal benefit of the 3rd Oreo is 19 utils. 5 / 15 12. 9-12.SSEF2 | 9-12.SSEF2.a | DOK: The graph above shows the marginal benefit that a student receives from additional hours of study, and the marginal cost the student will incur from additional hours of study. Which of the following is true? A. Beyond hours of study, there is no further benefit from devoting additional hours to study. B. At hours of study, the extra cost of study time exceeds the extra benefit of study time. C. The rational individual should study more than hours. D. The optimal number of hours that the student should study is hours. 6 / 15 13. 9-12.SSEF3 | 9-12.SSEF3.a | 9-12.SSEF3.b | DOK: Question Which of the following is the defining characteristic of a market economy? A. fair distribution of income and low income taxes B. equality of opportunity C. private ownership and protection of property rights D. the redistribution of income 7 / 15 14. 9-12.SSEF4 | 9-12.SSEF4.b | DOK: Of the feasible and efficient points on the production possibilities curve above, producing at which point will lead to the most economic growth in the future? A. Point M B. Point N C. Point R D. Point S 8 / 15 15. 9-12.SSEF4 | 9-12.SSEF4.a | DOK: An increase in which of the following would cause a rightward shift of the production possibilities curve for consumer goods and capital goods? A. an increase in the demand for consumer goods B. the efficient production of consumer goods C. an increase in investment in human capital D. an increase in taxes on consumers 16. 9-12.SSEF4.d | 9-12.SSEF4 | DOK: Assume an economy uses one input, labor, to produce two goods, X and Y. Which of the following would cause a shift to the right of the production possibilities curve ? A. a reduction in the unemployment of labor B. an increase in the amount of labor available for production C. an increase in the demand for good X and good Y D. a change in consumer tastes from good Y to good X 9 / 15 17. 9-12.SSEF4 | 9-12.SSEF4.c | 9-12.SSEIN1.a | DOK: Claire is an economist who can earn $150 per hour. She is also an excellent chef who can cook three times as fast as the best chef in the area, whose hourly wage is $20 per hour. Which of the following is a correct economic statement? A. Claire has a comparative advantage in economics so she should specialize in economics and hire the chef to cook for her. B. Claire is three times faster than any chef so she could give up economics to become a chef. C. Because Claire is an excellent chef, when the best chef works for Claire, she should pay the cheshouldf only 1/3 the hourly wage. D. Claire has an absolute and comparative advantage in both economics and cooking, so she work as an economist and as a chef. 18. 9-12.SSEF4.c | 9-12.SSEIN1.a | 9-12.SSEIN1 | 9-12.SSEF4 | DOK: Strategic Thinking If Mike can make 2 surfboards per hour or 10 bikes per hour and Joe can produce 4 surfboards per hour and 12 bikes. Which of the following is true? A. Mike’s opportunity cost for producing one bike is 5 surfboards. B. Joe has a comparative advantage in the production of both surfboards and bikes. C. Mike has a comparative advantage in the production of surfboards. D. Joe’s opportunity cost for producing one surfboard is 3 bikes. 10 / 15 19. 9-12.SSEIN | 9-12.SSEIN2 | 9-12.SSEIN2.b | DOK: Skills and Concepts What effect would the depreciation of the U.S. dollar have on the global automobile industry? A. American automobile manufacturers would export more vehicles abroad. B. Foreign automobile manufacturers would export more vehicles to the U.S. C. Foreign automobile manufacturers would increase production to meet U.S. demand. D. American automobile manufacturers would increase production to meet domestic demand. 20. 9-12.SSEIN | 9-12.SSEIN2 | 9-12.SSEIN2.b | DOK: Skills and Concepts What economic shift would be expected if the Chinese yen depreciated relative to the U.S. dollar? A. Chinese manufacturers would export more goods to the U.S. B. Chinese consumers would purchase more goods from the U.S. C. Chinese manufacturers would import more goods from the U.S. D. Chinese workers would manufacture fewer goods for the U.S. market. 11 / 15 21. 9-12.SSEIN | 9-12.SSEIN2 | 9-12.SSEIN2.a | DOK: Recall and Reproduction ​What is the term used to describe when there is an increase in the value of one currency relative to another? A. Inflation B. Stagnation C. Appreciation D. Depreciation 22. 9-12.SSEIN2.b | DOK: Skills and Concepts What would be the effect of an increase in U.S. trade barriers? A. Increased efficiency in U.S. production B. Lower prices for consumers C. Increase in trade for the U.S. D. Decrease in trade for the U.S. 23. 9-12.SSEF | 9-12.SSEF2 | 9-12.SSEF2.a | DOK: Skills and Concepts According to the concept of rational-decision making, how are marginal costs and marginal benefits impacted by the profit- maximizing rule? A. A rational person will choose the highest quantity of goods where marginal benefits outweigh marginal costs. B. A rational person will choose the highest quantity of goods where marginal costs outweigh marginal benefits. C. A rational person will choose the lowest quantity of goods where marginal benefits outweigh marginal costs. D. A rational person will choose the quantity of goods where profit is highest, regardless of the marginal costs and benefits. 12 / 15 24. 9-12.SSEF | 9-12.SSEF2 | 9-12.SSEF2.a | DOK: Skills and Concepts How does the Law of Diminishing Marginal Utility explain consumer consumption and satisfaction? A. Satisfaction decreases when consumption of additional goods and services decreases. B. Satisfaction decreases when consumption of additional goods and services increases. C. Satisfaction increases when consumption of additional goods and services increases. D. Satisfaction increases when consumption of additional goods and services decreases. 13 / 15 25. 9-12.SSEF4.d | 9-12.SSEF4 | 9-12.SSEF | DOK: Strategic Thinking Consider the two production possibilities curves below, and then use them to answer the question that follows. What do the two production possibilities curves indicate about the "opportunity costs" for the products of these different pairs of goods? A. Opportunity costs are decreasing for producing long-sleeve t- shirts and short-sleeve t-shirts, because they use the same resources. Opportunity costs increase to produce computers and tacos. B. Opportunity costs for producing computers and tacos increase, because they use different resources. Opportunity costs for producing long-sleeve t-shirts and short-sleeve t-shirts are also increasing. C. Opportunity costs for producing computers and tacos are decreasing, because they do not use similar resources. Opportunity costs for producing long-sleeve t-shirts and short- sleeve t-shirts remain constant. D. Opportunity costs for the production of computers and tacos keep increasing because their resources are not the same. Opportunity costs remain constant for producing long-sleeve t- shirts and short-sleeve t-shirts. 14 / 15 26. 9-12.SSEIN1.a | DOK: Skills and Concepts The law of comparative advantage states that a nation is better off when it produces goods and services for which it has a comparative advantage. How is this comparative advantage obtained? A. By producing only products with a high demand value B. By increasing the amount of goods that are traded C. By limiting trade to nonrenewable products D. By producing a product at a lower opportunity cost 15 / 15