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Ivy Software - Fundamentals of Economics EXAM
NEWEST VERSION WITH COMPLETE 300
QUESTIONS AND CORRECT ANSWERS JUST
RELEASED
Question: The ___________________ of any life activity is the cost of what you give up to
partake in that activity. Among a comparison of individuals, businesses or countries, the one
who has the lowest opportunity cost of an activity has a comparative advantage in that activity.
a. opportunity cost
b. comparative advantage
c. factors of production
d. entrepreneurial ability - CORRECT ANSWER✔✔a. opportunity cost
Question: A government imposed and legally enforced minimum market price.
a. price ceiling
b. surplus
c. economic burden
d. price floor - CORRECT ANSWER✔✔d. price floor
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Question: All the productive resources of the earth may be put in one of the following four
categories: land, labor, capital, and entrepreneurial ability. In limited supply, so they must be
allocated among members of society.
a. comparative advantage
b. entrepreneurial ability
c. opportunity cost
d. factors of production - CORRECT ANSWER✔✔d. factors of production
Question: Includes all natural resources that are used to produce goods & services
a. land
b. labor
c. capital
d. entrepreneurial ability - CORRECT ANSWER✔✔a. land
Question: Includes work time and work effort that people devote to producing goods and
services
a. land
b. entrepreneurial ability
c. labor
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d. capital - CORRECT ANSWER✔✔c. labor
Question: Includes all tools, instruments, machines, buildings, and other constructions that
have been produced in the past that businesses now use to produce goods and services
a. capital
b. labor
c. land
d. entrepreneurial ability - CORRECT ANSWER✔✔a. capital
Question: Includes all human resources that organize the other factors of production.
Entrepreneurs come up with new ideas about what and how to produce, make business
decisions, and bear risks that arise from these decisions
a. entrepreneurial ability
c. capital
b. labor
d. land - CORRECT ANSWER✔✔a. entrepreneurial ability
Question: The ________ mechanism is one way that society chooses to allocate scarce
resources. The market prices of each factor of production has been assigned a unique name by
economists.
a. rent
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b. price
c. interest
d. profit - CORRECT ANSWER✔✔b. price
Question: Unit price one pays for the use of land.
a. profit
b. wage
c. interest
d. rent - CORRECT ANSWER✔✔d. rent
Question: Unit price one pays for the services of labor
a. rent
b. wage
c. profit
d. interest - CORRECT ANSWER✔✔b. wage
Question: Unit price one pays for the use of capital
a. profit
b. interest
4
SUCCESS!
Ivy Software - Fundamentals of Economics EXAM
NEWEST VERSION WITH COMPLETE 300
QUESTIONS AND CORRECT ANSWERS JUST
RELEASED
Question: The ___________________ of any life activity is the cost of what you give up to
partake in that activity. Among a comparison of individuals, businesses or countries, the one
who has the lowest opportunity cost of an activity has a comparative advantage in that activity.
a. opportunity cost
b. comparative advantage
c. factors of production
d. entrepreneurial ability - CORRECT ANSWER✔✔a. opportunity cost
Question: A government imposed and legally enforced minimum market price.
a. price ceiling
b. surplus
c. economic burden
d. price floor - CORRECT ANSWER✔✔d. price floor
1
SUCCESS!
,Page 2 of 75
Question: All the productive resources of the earth may be put in one of the following four
categories: land, labor, capital, and entrepreneurial ability. In limited supply, so they must be
allocated among members of society.
a. comparative advantage
b. entrepreneurial ability
c. opportunity cost
d. factors of production - CORRECT ANSWER✔✔d. factors of production
Question: Includes all natural resources that are used to produce goods & services
a. land
b. labor
c. capital
d. entrepreneurial ability - CORRECT ANSWER✔✔a. land
Question: Includes work time and work effort that people devote to producing goods and
services
a. land
b. entrepreneurial ability
c. labor
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d. capital - CORRECT ANSWER✔✔c. labor
Question: Includes all tools, instruments, machines, buildings, and other constructions that
have been produced in the past that businesses now use to produce goods and services
a. capital
b. labor
c. land
d. entrepreneurial ability - CORRECT ANSWER✔✔a. capital
Question: Includes all human resources that organize the other factors of production.
Entrepreneurs come up with new ideas about what and how to produce, make business
decisions, and bear risks that arise from these decisions
a. entrepreneurial ability
c. capital
b. labor
d. land - CORRECT ANSWER✔✔a. entrepreneurial ability
Question: The ________ mechanism is one way that society chooses to allocate scarce
resources. The market prices of each factor of production has been assigned a unique name by
economists.
a. rent
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b. price
c. interest
d. profit - CORRECT ANSWER✔✔b. price
Question: Unit price one pays for the use of land.
a. profit
b. wage
c. interest
d. rent - CORRECT ANSWER✔✔d. rent
Question: Unit price one pays for the services of labor
a. rent
b. wage
c. profit
d. interest - CORRECT ANSWER✔✔b. wage
Question: Unit price one pays for the use of capital
a. profit
b. interest
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