VIRTUAL SC ECONOMICS CP EXAM
UPDATED ACTUAL QUESTIONS
CORRECT ANSWERS
◉ When a nation's total output increases over time, the nation is
experiencing _____.
Select one:
a. a decrease in gross domestic product
b. economic growth
c. economic interdependence
d. an expansion of the possibilities curve. Answer: b. economic growth
◉ Which of the following descriptions best explains the meaning of
opportunity cost?
Select one:
a. the initial cost of starting a new business
b. the cost of business failure
c. the cost of choosing one alternative over another
,d. the risk associated with producing a new item. Answer: c. the cost of
choosing one alternative over another
◉ A nation's wealth is determined by its _____.
Select one:
a. accumulation of all tangible and intangible resources
b. natural resources
c. accumulation of all tangible products
d. product possibilities frontier. Answer: c. accumulation of all tangible
products
◉ Consumers waiting in long lines for a new product is an example of
_____.
Select one:
a. consumerism
b. consumer rights
c. consumer responsibilities
d. scarcity. Answer: d. scarcity
◉ Paradox of value refers to the _____.
,Select one:
a. high value of an essential item and the low value of a nonessential
item
b. high value of a nonessential item and the low value of an essential
item
c. contradiction of what consumers want and what they need
d. contradiction between gross domestic product and market value.
Answer: b. high value of a nonessential item and the low value of an
essential item
◉ The efficient use of scarce resources leads to an increase in _____.
Select one:
a. productivity
b. investment
c. scarcity
d. capital. Answer: a. productivity
◉ The most comprehensive measure of a nation's wealth is provided by
its _____.
Select one:
a. gross domestic product
, b. TINSTAAFL rating
c. product possibilities curve
d. capital goods. Answer: a. gross domestic product
◉ When a business needs to decide whether a certain action is worth the
cost, the most helpful analysis would be a(n) _____.
Select one:
a. production possibility comparison
b. cost-benefit analysis
c. economic model
d. needs assessment. Answer: b. cost-benefit analysis
◉ Which of the following statements best describes the purpose of the
production possibilities curve?
Select one:
a. It predicts the future production of a nation.
b. It identifies trends in production.
c. It shows which products are most profitable.
d. It identifies all possible combinations of goods and services an
economy can produce. Answer: d. It identifies all possible combinations
of goods and services an economy can produce.
UPDATED ACTUAL QUESTIONS
CORRECT ANSWERS
◉ When a nation's total output increases over time, the nation is
experiencing _____.
Select one:
a. a decrease in gross domestic product
b. economic growth
c. economic interdependence
d. an expansion of the possibilities curve. Answer: b. economic growth
◉ Which of the following descriptions best explains the meaning of
opportunity cost?
Select one:
a. the initial cost of starting a new business
b. the cost of business failure
c. the cost of choosing one alternative over another
,d. the risk associated with producing a new item. Answer: c. the cost of
choosing one alternative over another
◉ A nation's wealth is determined by its _____.
Select one:
a. accumulation of all tangible and intangible resources
b. natural resources
c. accumulation of all tangible products
d. product possibilities frontier. Answer: c. accumulation of all tangible
products
◉ Consumers waiting in long lines for a new product is an example of
_____.
Select one:
a. consumerism
b. consumer rights
c. consumer responsibilities
d. scarcity. Answer: d. scarcity
◉ Paradox of value refers to the _____.
,Select one:
a. high value of an essential item and the low value of a nonessential
item
b. high value of a nonessential item and the low value of an essential
item
c. contradiction of what consumers want and what they need
d. contradiction between gross domestic product and market value.
Answer: b. high value of a nonessential item and the low value of an
essential item
◉ The efficient use of scarce resources leads to an increase in _____.
Select one:
a. productivity
b. investment
c. scarcity
d. capital. Answer: a. productivity
◉ The most comprehensive measure of a nation's wealth is provided by
its _____.
Select one:
a. gross domestic product
, b. TINSTAAFL rating
c. product possibilities curve
d. capital goods. Answer: a. gross domestic product
◉ When a business needs to decide whether a certain action is worth the
cost, the most helpful analysis would be a(n) _____.
Select one:
a. production possibility comparison
b. cost-benefit analysis
c. economic model
d. needs assessment. Answer: b. cost-benefit analysis
◉ Which of the following statements best describes the purpose of the
production possibilities curve?
Select one:
a. It predicts the future production of a nation.
b. It identifies trends in production.
c. It shows which products are most profitable.
d. It identifies all possible combinations of goods and services an
economy can produce. Answer: d. It identifies all possible combinations
of goods and services an economy can produce.
