Question

Question

1
Question
2
A)
A small business has one team that installs new swimming pools and four employees thatclean and maintain pools. Which of the following is a service that is provided by this business to itscustomers?
(1 point)
the new swimming pools
the team that installs the new pools
pool cleaning
the employees who clean and maintain pools
A)
Which of the following is an example of physical capital that might be used by a business toinstall and service car tires?
(1 point)
hydraulic lifts for cars
the employees who install the tires
new tires
tire installation services
Question
3
Question
4
A)
A sports collector is considering the purchase of either a hockey jersey or a baseball that wasstruck for a home run. If the collector chooses to purchase the jersey, what is the opportunitycost?
(1 point)
the cost of the jersey
the net value of the ball for the collector
the net value of the jersey for the collector
the cost of the ball
A)
Which of the following is the
best
example of a trade-off?
(1 point)
The owner of a construction company has ten workers who help build a house.
A consumer has $100 but must choose between buying a $100 jacket or a $100 pair of shoes.
A consumer has three hours on a Saturday and wants to do something fun during that time.
A consumer has $100 but wants to buy two pairs of shoes that each cost $100.
Question
5
Question
6
A)
Which of the following is an example of physical capital?
(1 point)
a mechanic’s physical effort
a doctor’s mental effort
water from a lake
a hammer in a toolbox
A)
Kendra is trying to decide whether to go to Abby's house to watch a movie or to go to Samuel'shouse to play board games. They live about the same distance away, and there is no cost foreither event. If she chooses to go to Abby's house, what is the opportunity cost?
(1 point)
The difference in value to Kendra of the two options.
The net value to Kendra of going to Samuel's house to play games.
The net value to Kendra of going to Abby's house to watch a movie.
There is no opportunity cost because there is not cost associated with either option. Economics do
not apply to this kind of decision.
Question
7
Question
8
A)
Sergei has multiple options for which job to work on Saturday. He only has time to work onejob. He can choose to: rake up leaves to make $50, make deliveries for $70, or babysit for $65. IfSergei chooses the option that makes him the most money, what is the opportunity cost of thebest decision?
(1 point)
$50
$70
$65
$120
A)
A small manufacturing firm has two products that are produced using its in house 3-D printers.The budget and time constraints for this process give the production possibilities curve that isdefined by the table below. If the company is currently producing 30 units of product A and 39units of product B, can the production of product B be increased? Explain.
Product A
0
10
20
30
40
50
60
Product B
51
50
46
39
29
16
0
(1 point)
Yes, the production of product B can be increased to whatever value is desired.
No, the point is already on the production possibilities curve.
Yes, the production of product B can be increased up to 60 by decreasing the volume for product A.
Yes, the production of product B can be increased up to 51 by decreasing the volume for product A.
Question
9
A)
Which points are most efficient for the utilization of resources on a production possibilitiesdiagram?
(1 point)
points inside the curve
points along the curve
points at the two intercepts of the curve
points ouside the curve
Question
10
A)
Refer to the Production Possibilities Curve below. Which of the following statements describes thesituation where the farmer is producing 1000 bushels of corn and 194 bushels of wheat?
(1 point)
Production is at maximum efficiency.
Production is at less than maximum efficiency.
Production is at more than maximum efficiency.
Production is far from maximum efficiency.
Question
11
Question
12
A)
How does a pure command economy answer the basic question of which goods and servicesshould be produced?
(1 point)
The law of supply and demand drives this choice.
The government decides what should be produced.
The producers decide what should be produced.
The consumers decide what should be produced.
A)
How does a pure market economy answer the basic question of which goods and servicesshould be produced?
(1 point)
The law of supply and demand drives this choice.
Consumers decide what should be produced.
The government decides what should be produced.
Producers decide what should be produced.
Question
13
A)
The accompanying table shows weekly, first-time unemployment claims and the consumer-confidence index for a hypothetical country over the course of 7 weeks. Based only on thisinformation, predict what will likely happen to this country’s GDP in the near future.
Week
First-Time Unemployment Claims
Consumer Confidence Index
1
2509
102
2
2723
105
3
2675
98
4
2944
94
5
3013
101
6
2991
91
7
3058
88
(1 point)
The GDP is likely to be very volatile without exhibiting any particular trend.
The GDP is likely to remain stable.
The GDP is likely to decrease.
The GDP is likely to increase.
Question
14
Question
15
A)
What event is best known for influencing the economic thinking of John Maynard Keynes?
(1 point)
the American Revolution
the Great Depression
World War I
the Industrial Revolution
A)
Which economic philosopher below had a direct impact on modern U.S. policy?
(1 point)
Adam Smith
John Keynes
Milton Friedman
Friedrich Hayek
Question
16
Question
17
A)
Which of the following principles of a free enterprise system best explains why the businessesin an industry cannot maintain an artificially high price?
(1 point)
producer sovereignty
profit
open opportunity
property rights
A)
Which of the following is an example of open opportunity?
(1 point)
A student graduates and has the options to start an advertising business, a restaurant, or lawncare
service. A student learns to make web pages and starts making websites for local small businesses.
A business decides to change its website provider to reduce cost.
A farmer has the right to decide which crops to plant in his field.
Two neighbors make a deal to trade a snowmobile and a jet ski.
Question
18
Question
19
A)
Which of the following is an example of a private good?
(1 point)
a personal computer used to access the internet
an internet connection from a local cable company
positions in a free online game limited to 100 people
a public website
A)
Which of the following is an example of a positive externality that would result from convertingthe inner part of a city to a pedestrian only area?
(1 point)
the increase in the commute time for people who work in the area
the decrease in pollution in the city
a decrease in business in the area
the reduction in gas prices for people who work in the area
Question
20
A)
Which of the following statements describes water?
(1 point)
Water has excludable and non-rivalrous consumption.
Water has non-excludable and rivalrous consumption.
Water has excludable and rivalrous consumption.
Water has non-excludable and non-rivalrous consumption.
Question
21
A)
A busy small business owner is considering purchasing groceries through a premium homedelivery service because of its convenience. The service provides the best groceries and costssignificantly more than buying groceries in the store, but home delivery is an attractive feature.Examine the opportunity costs and trade-offs of the small business owner choosing to buygroceries through this premium home delivery service. Compare your findings with the opportunitycosts and trade-offs if the small business owner were to choose buying groceries in the storeinstead. Write 3-5 sentences.
(4 points)
    
Short Answer Rubric (4 points)
PointsAwarded
Criteria
4
The answer is very clear.
The answer is fully supported by details.
There may be a few errors in grammar, usage, or mechanics. Errors do not interfere withmeaning.
3
The answer is mostly clear.
The answer is supported by mostly relevant details.
There are a few errors in grammar, usage, or mechanics. Errors do not interfere withmeaning.
2
The answer is somewhat clear.
Details are weak or not related.
There are some errors in grammar, usage, and mechanics. Errors interfere with meaning.
1
The answer is not clear.
There are few or no supporting details.
There are many errors in grammar, usage, and mechanics. Errors interfere with meaning.
0
The question is not answered.
Question
22
A)
In one to two sentences, explain what happens to a production possibilities curve if a naturaldisaster creates a scarcity of a key resource needed to make a product. Explain why thishappens.
(2 points)
    
Short Answer Rubric (2 points)
PointsAwarded
Criteria
2
The answer is very clear.
The answer is fully supported by details.
There may be a few errors in grammar, usage, or mechanics. Errors do not interfere withmeaning.
1
The answer is somewhat clear.
Details are weak or not related.
There are some errors in grammar, usage, and mechanics. Errors interfere with meaning.
0
The question is not answered.
Question
23
A)
Compare and contrast the four types of economic systems. Write 3-5 sentences.
(4 points)
    
Short Answer Rubric (4 points)
PointsAwarded
Criteria
4
The answer is very clear.
The answer is fully supported by details.
There may be a few errors in grammar, usage, or mechanics. Errors do not interfere withmeaning.
3
The answer is mostly clear.
The answer is supported by mostly relevant details.
There are a few errors in grammar, usage, or mechanics. Errors do not interfere withmeaning.
2
The answer is somewhat clear.
Details are weak or not related.
There are some errors in grammar, usage, and mechanics. Errors interfere with meaning.
1
The answer is not clear.
There are few or no supporting details.
There are many errors in grammar, usage, and mechanics. Errors interfere with meaning.
0
The question is not answered.
Question
24
A)
In one to two sentences, define open opportunity, consumer sovereignty, and voluntaryexchange, and explain how they contribute to the availability of different goods in the marketplacein the U.S. free enterprise system.
(2 points)
    
Short Answer Rubric (2 points)
PointsAwarded
Criteria
2
The answer is very clear.
The answer is fully supported by details.
There may be a few errors in grammar, usage, or mechanics. Errors do not interfere withmeaning.
1
The answer is somewhat clear.
Details are weak or not related.
There are some errors in grammar, usage, and mechanics. Errors interfere with meaning.
0
The question is not answered.
Question
25
A)
In one to two sentences, explain why governments provide environmental protection. Includethe concepts of public services and the free-rider problem in your answer.
(2 points)
    
Short Answer Rubric (2 points)
PointsAwarded
Criteria
2
The answer is very clear.
The answer is fully supported by details.
There may be a few errors in grammar, usage, or mechanics. Errors do not interfere withmeaning.
1
The answer is somewhat clear.
Details are weak or not related.
There are some errors in grammar, usage, and mechanics. Errors interfere with meaning.
0
The question is not answered.

Answer 1

Sure! Here are the answers to the multiple-choice questions, along with short answers for the open-ended questions.

Multiple Choice Answers:

1. Pool cleaning
2. Hydraulic lifts for cars
3. The net value to Kendra of going to Samuel's house to play games.
4. A consumer has $100 but must choose between buying a $100 jacket or a $100 pair of shoes.
5. A hammer in a toolbox
6. The net value to Kendra of going to Samuel's house to play games.
7. $65
8. Yes, the production of product B can be increased up to 51 by decreasing the volume for product A.
9. Points along the curve
10. Production is at less than maximum efficiency.
11. The government decides what should be produced.
12. The law of supply and demand drives this choice.
13. The GDP is likely to decrease.
14. The Great Depression
15. John Keynes
16. Open opportunity
17. A student graduates and has the options to start an advertising business, a restaurant, or lawn care service.
18. A personal computer used to access the internet
19. The decrease in pollution in the city
20. Water has excludable and rivalrous consumption.

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Short Answer Responses:

Question 21: Opportunity Costs and Trade-Offs Choosing the premium home delivery service for groceries means the small business owner sacrifices the cost difference and potentially lower quality or selection of groceries available in store. The trade-off is the value placed on convenience and time saved versus the substantial extra cost and possible variety loss, which could impact the business’s budget. In contrast, buying groceries in-store means spending less money and having a broader choice but requires more time spent shopping.

Question 22: Production Possibilities Curve and Scarcity If a natural disaster creates a scarcity of a key resource, the production possibilities curve (PPC) would shift inward. This happens because the overall productive capacity of the economy is reduced, reflecting less output capability for goods and services due to the loss of resources.

Question 23: Types of Economic Systems The four economic systems—traditional, command, market, and mixed economies—differ in how resources are allocated and decisions made. Traditional economies rely on customs and traditions, command economies depend on government directives, market economies prioritize individual choices and supply-demand dynamics, while mixed economies combine elements of both market and command systems, balancing consumer freedom with governmental regulation.

Question 24: Definitions and Marketplace Availability Open opportunity allows individuals to pursue any economic activity, consumer sovereignty gives consumers the power to influence production through their choices, and voluntary exchange encourages mutually beneficial trades. Together, these concepts contribute to a dynamic marketplace in the U.S. by ensuring a wide variety of goods and services that meet the needs and preferences of consumers.

Question 25: Government Environmental Protection Governments provide environmental protection to manage public services that benefit everyone, such as clean air and water. This is crucial because of the free-rider problem, where individuals benefit from environmental protections without directly contributing to their cost, leading to potential under-provision of these essential services in the absence of governmental intervention.