Georgia Milestones: Scarcity, Choice & the Production Possibilities Curve Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Because resources are scarce, but wants are not:

Question 2 2. Capital involves:

Question 3 3. With the same amount of resources, Country A can produce 25 tons of chicken or 50 tons of wheat. What is Country A's opportunity cost of producing 1 ton of wheat?

Question 4 4. The production possibilities curve for two goods is bowed outward because _____.

Question 5 5. In one hour, Sally can complete 4 reports or she can write 8 computer programs. Calculate the opportunity cost for this scenario.

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Question 6 6. Outward shifts (to the right) in the production possibilities curve will result in which of the following?

Question 7 7. Which is TRUE of points located outside of the production possibility curve?

Question 8 8. Consumer goods are further classified into what two categories?

Question 9 9. Which job is considered an intellectual input?

Question 10 10. Which of the following is NOT part of the Entrepreneurial Spirit?

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Question 11 11. Factors of production include _____.

Question 12 12. Sally wants to open her own nail salon. Which of the following does she need to start a business?

Question 13 13. When a point is on the production possibilities curve and there are no other points specifically on the curve, how can we interpret this point?

Question 14 14. What does the production possibilities model show?

Question 15 15. Which of the following best describes opportunity cost?

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Question 16 16. During the time Mary spent studying macroeconomics, she could have instead either made brownies or played the piano. She thinks to herself that if she wasn't studying, then she would have made brownies. In this case, her opportunity cost of studying is equal to which of the following?

Question 17 17. In what example below are grapes a consumer good?

Question 18 18. It takes Joan 1 hour to make a pizza and 2 hours to make a cake. Joan's opportunity cost of making a pizza is which of the following?

Question 19 19. Assuming there are only two countries, Country A can produce 10 tons of wheat or 20 tons of rice, while Country B can produce 5 tons of wheat or 15 tons of rice. Which country has the highest opportunity cost for producing 1 ton of rice?

Question 20 20. Investments in which of these do more to increase economic growth?

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Question 21 21. _____ is our _____, also called the value of the next best production alternative that is not chosen.

Question 22 22. Which of the following people has the highest opportunity cost of earning a college degree, if they must give up their present job?

Question 23 23. Economics is best described as the study of:

Question 24 24. Perishable, soft, and semi-durable are all subcategories of what?

Question 25 25. What is not an example of a consumer good?

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Question 26 26. Assume that you have two hours to spend at the mall. You can either visit the bookstore or enjoy a movie at the theater. The opportunity cost of watching a movie is equivalent to which of the following?

Question 27 27. Scarcity means:

Question 28 28. The points graphed along the production possibilities curve demonstrate _____.

Question 29 29. If a good is used as an input to make another good, it is not a consumer good but called a ____ good.

Question 30 30. Assume that land can be used either for producing corn or producing beef. The opportunity cost of converting an acre from producing corn to raising cattle for beef is equal to which of the following?

Georgia Milestones: Scarcity, Choice & the Production Possibilities Curve Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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