Correct
+ point(s)
1. Because human wants are insatiable and unlimited while available resources are limited, people
are said to face the problem of
Your Answer: A) scarcity.
Correct
+ point(s)
2. The question of "How are goods and services produced?" most closely addresses which of
the following issues?
Your Answer: B) Should Ford use expensive industrial robots or inexpensive Mexican autoworkers to
produce SUVs?
Correct
+ point(s)
3. In order to make a rational choice, people must
Your Answer: C) compare marginal costs and marginal
benefits.
,Correct
+ point(s)
4.Match statement to their type: [Increase in interest rates decreases investments]
Your Answer: Positive
Correct
+ point(s)
4. Match statement to their type: [The only way to bring the economy out of a recession is to
decrease taxes]
Your Answer: Normative
Correct
+ point(s)
5. What would be an example of a consumption good or service? (Select 2)
Your Answer: A) Jake buys an iPhone., C) Rhianna gets a
haircut.
,Correct
+ point(s)
6. The largest share of total production in the United States is
Your Answer: A) consumption goods and services.
Correct
+ point(s)
7. The difference between consumption and capital goods is that
Your Answer: B) capital goods are used to produce additional goods while consumption goods are not.
Correct
+ point(s)
8. Which of the following correctly lists the categories of factors of production?
Your Answer: C) land, labor, capital, and entrepreneurship
Correct
, + point(s)
9. Which of the following is NOT directly related to human capital?
Your Answer: D) an MRI machine
Correct
+ point(s)
10. Capital is a factor of production. Which TWO of the following are examples of capital?
Your Answer: B) An accounting software for a retail store, D) a drill press in your local machine shop
Correct
+ point(s)
11. In the circular flow model,
Your Answer: D) both firms and households buy or sell in different markets.
Correct
+ point(s)
+ point(s)
1. Because human wants are insatiable and unlimited while available resources are limited, people
are said to face the problem of
Your Answer: A) scarcity.
Correct
+ point(s)
2. The question of "How are goods and services produced?" most closely addresses which of
the following issues?
Your Answer: B) Should Ford use expensive industrial robots or inexpensive Mexican autoworkers to
produce SUVs?
Correct
+ point(s)
3. In order to make a rational choice, people must
Your Answer: C) compare marginal costs and marginal
benefits.
,Correct
+ point(s)
4.Match statement to their type: [Increase in interest rates decreases investments]
Your Answer: Positive
Correct
+ point(s)
4. Match statement to their type: [The only way to bring the economy out of a recession is to
decrease taxes]
Your Answer: Normative
Correct
+ point(s)
5. What would be an example of a consumption good or service? (Select 2)
Your Answer: A) Jake buys an iPhone., C) Rhianna gets a
haircut.
,Correct
+ point(s)
6. The largest share of total production in the United States is
Your Answer: A) consumption goods and services.
Correct
+ point(s)
7. The difference between consumption and capital goods is that
Your Answer: B) capital goods are used to produce additional goods while consumption goods are not.
Correct
+ point(s)
8. Which of the following correctly lists the categories of factors of production?
Your Answer: C) land, labor, capital, and entrepreneurship
Correct
, + point(s)
9. Which of the following is NOT directly related to human capital?
Your Answer: D) an MRI machine
Correct
+ point(s)
10. Capital is a factor of production. Which TWO of the following are examples of capital?
Your Answer: B) An accounting software for a retail store, D) a drill press in your local machine shop
Correct
+ point(s)
11. In the circular flow model,
Your Answer: D) both firms and households buy or sell in different markets.
Correct
+ point(s)
