pre assessment d089
Study online at https://quizlet.com/_dat7zv
1. Which set of questions is answered when a society What, how, and for whom
decides how to distribute its scarce resources? to produce goods and ser-
vices
2. A local government is making public policy decisions What to produce
about spending funds. The residents have differing
opinions on whether the funds should be used for
road repair, school expansion, health care increases, or
construction of a senior center. The local government
must decide the priority.
Which economic question is this decision an example
of?
3. A newspaper is trying to help citizens understand eco- Increasing the money sup-
nomic principles. Which misconception should the ar- ply raises the standard of
ticle address? living for consumers in the
long run.
4. Which scenario covers a topic included in microeco- As a result of a hard freeze,
nomics? the price of cherries in-
creases.
5. What accurately characterizes capital? It can be in the form of in-
tellectual discoveries.
6. Why is the circular flow model used? To describe the interaction
of businesses and house-
holds in markets
7. What is a result of increasing opportunity costs? To produce more of one
good, the economy gives
up more and more of oth-
er goods.
, pre assessment d089
Study online at https://quizlet.com/_dat7zv
8. How would a production possibility frontier be drawn As a constant slope, down-
for an economy that produces two goods with homo- ward from left to right
geneous resources?
9. A company is operating at a point inside its production The resources of the com-
possibility frontier. pany are being inefficient-
ly utilized.
10. A country produces two goods (A and B) and currently If production of Good A
operates on the bowed out production possibilities increases, then production
frontier. What is the relationship between the produc- of Good B will decrease.
tions of Good A and Good B?
11. A local farm grows apples and oranges. Production Production of apples will
possibilities for this farm are provided in the following increase by 50 pounds,
figure: and production of oranges
will increase by 15 pounds.
12. A group of roommates decides to buy pizza together. The quantity demanded of
The table below shows the quantity of pizza demanded pizza slices will increase by
at different price levels: 10 slices.
Demand for Pizza After a Drop in Price Price of Pizza
Quantity Demanded
(per slice) (in slices)
$0.50- 20
$0.75- 15
$1.00-10
$1.25- 5
Study online at https://quizlet.com/_dat7zv
1. Which set of questions is answered when a society What, how, and for whom
decides how to distribute its scarce resources? to produce goods and ser-
vices
2. A local government is making public policy decisions What to produce
about spending funds. The residents have differing
opinions on whether the funds should be used for
road repair, school expansion, health care increases, or
construction of a senior center. The local government
must decide the priority.
Which economic question is this decision an example
of?
3. A newspaper is trying to help citizens understand eco- Increasing the money sup-
nomic principles. Which misconception should the ar- ply raises the standard of
ticle address? living for consumers in the
long run.
4. Which scenario covers a topic included in microeco- As a result of a hard freeze,
nomics? the price of cherries in-
creases.
5. What accurately characterizes capital? It can be in the form of in-
tellectual discoveries.
6. Why is the circular flow model used? To describe the interaction
of businesses and house-
holds in markets
7. What is a result of increasing opportunity costs? To produce more of one
good, the economy gives
up more and more of oth-
er goods.
, pre assessment d089
Study online at https://quizlet.com/_dat7zv
8. How would a production possibility frontier be drawn As a constant slope, down-
for an economy that produces two goods with homo- ward from left to right
geneous resources?
9. A company is operating at a point inside its production The resources of the com-
possibility frontier. pany are being inefficient-
ly utilized.
10. A country produces two goods (A and B) and currently If production of Good A
operates on the bowed out production possibilities increases, then production
frontier. What is the relationship between the produc- of Good B will decrease.
tions of Good A and Good B?
11. A local farm grows apples and oranges. Production Production of apples will
possibilities for this farm are provided in the following increase by 50 pounds,
figure: and production of oranges
will increase by 15 pounds.
12. A group of roommates decides to buy pizza together. The quantity demanded of
The table below shows the quantity of pizza demanded pizza slices will increase by
at different price levels: 10 slices.
Demand for Pizza After a Drop in Price Price of Pizza
Quantity Demanded
(per slice) (in slices)
$0.50- 20
$0.75- 15
$1.00-10
$1.25- 5
