The price paid for the use of capital is called (Points : 1)
2. Capital consists of (Points : 1)
stocks and bonds.
the assets of the government.
*aids to production created by humans.
the assets of a firm.
the assets of upper-income groups.
3. When the government redistributes income, it is answering a basic economic question. Which one? (Points : 1)
4. The basic economic problem is (Points : 1)
predicting human behavior.
harnessing self-interest to serve the public interest.
building realistic models.
*balancing supply and demand.
scarce resources, unlimited wants.
5. The measure of the cost of a particular good in terms of what is given up to produce that good is called (Points : 1)
a necessary cost.
a dollar cost.
a fixed cost.
an explicit cost.
*an opportunity cost.
6. Demand relates the various amounts that consumers are willing to buy over a specified time period (Points : 1)
at various prices.
as their tastes change.
as their incomes change.
*when prices increase.
7. If beans are inferior goods, a decrease in income will (Points : 1)
increase the production of beans.
shift the demand curve for beans to the left.
shift the demand curve for beans to the right.
rotate the supply curve in a clockwise manner.
*cause beans to sell at a lower price.
8. If left alone, a market-directed economy will (Points : 1)
*avoid the production problems encountered in command economies.
provide the correct economic choice in many but not all cases.
invariably provide the correct economic choices.
protect consumers from monopoly.
9. In a market system, property rights are enforced by (Points : 1)
business and individuals, but not government.
10. A production possibilities curve shows (Points : 1)
*that in order to acquire more of one good, some of the alternative good must be given up.
that any amount of goods could be produced by society if people worked harder.
that in order to acquire more of one good, none of the alternative good must be given up.
various combinations of guns, bullets, bread, and butter that can be produced under conditions of 6 percent unemployment