I.B.T Final Exam Chapter 1-3
All of the following is a need EXCEPT (a) food and shelter (b) clothing (c) fine jewelry
(d) clean air. - ANS C.) Fine Jewelry
The means through which goods and services are produced are called (a) economic
resources (b) needs (c) spending opportunities (d) economic choices. - ANS A.) Economic
Resources
All of the following is a capital resource EXCEPT (a) a pickup truck (b) a factory (c) lumber
(d) employees. - ANS D.) Employees
The value of the next-best alternative that you did not choose is called (a) trade-off cost
(b) scarcity (c) opportunity cost (d) economic cost. - ANS C.) Opportunity Cost
When a country decides to focus on advanced technology and a skilled labor force, it is
primarily answering which of the basic economic questions? (a) What to produce? (b) How
to produce? (c) Which needs to satisfy? (d) Which wants to satisfy? - ANS B.) How to produce
Personal economic freedom is most limited in a (a) command economy (b) market economy
(c) mixed economy (d) traditional economy. - ANS A.) Command economy
Which of the following is NOT characteristic of capitalism? (a) freedom of choice
(b) government ownership of resources (c) the profit motive (d) competition among
businesses - ANS B.) Government ownership
Which of the following is a consumer? (a) a business (b) an individual (c) the government
(d) all of the above are consumers - ANS D.) all of the above
The quantity of a good or service that consumers are willing and able to buy is called
(a) supply (b) an economic want (c) demand (d) an economic amount. - ANS C.) Demand
In which of the following situations is demand MOST likely to be reduced? (a) customers
see a number of products they believe will satisfy a need (b) customers cannot find a good
substitute for a product they want (c) prices for a popular product are reduced (d) all of the
above tend to reduce demand - ANS A.) Customer
Which of the following would NOT be included in a measure of GDP? (a) Ivanhoe
Publications exports $25 million of books to Ireland. (b) The U.S. government buys office
supplies worth $30 million from The Supply Closet. (c) You give your car a tune-up and
change the oil yourself. (d) You hire Larry's Lawn Care to cut your grass once per week
during the summer for $50/week. - ANS C.) You give your car a tune-up and
All of the following is a need EXCEPT (a) food and shelter (b) clothing (c) fine jewelry
(d) clean air. - ANS C.) Fine Jewelry
The means through which goods and services are produced are called (a) economic
resources (b) needs (c) spending opportunities (d) economic choices. - ANS A.) Economic
Resources
All of the following is a capital resource EXCEPT (a) a pickup truck (b) a factory (c) lumber
(d) employees. - ANS D.) Employees
The value of the next-best alternative that you did not choose is called (a) trade-off cost
(b) scarcity (c) opportunity cost (d) economic cost. - ANS C.) Opportunity Cost
When a country decides to focus on advanced technology and a skilled labor force, it is
primarily answering which of the basic economic questions? (a) What to produce? (b) How
to produce? (c) Which needs to satisfy? (d) Which wants to satisfy? - ANS B.) How to produce
Personal economic freedom is most limited in a (a) command economy (b) market economy
(c) mixed economy (d) traditional economy. - ANS A.) Command economy
Which of the following is NOT characteristic of capitalism? (a) freedom of choice
(b) government ownership of resources (c) the profit motive (d) competition among
businesses - ANS B.) Government ownership
Which of the following is a consumer? (a) a business (b) an individual (c) the government
(d) all of the above are consumers - ANS D.) all of the above
The quantity of a good or service that consumers are willing and able to buy is called
(a) supply (b) an economic want (c) demand (d) an economic amount. - ANS C.) Demand
In which of the following situations is demand MOST likely to be reduced? (a) customers
see a number of products they believe will satisfy a need (b) customers cannot find a good
substitute for a product they want (c) prices for a popular product are reduced (d) all of the
above tend to reduce demand - ANS A.) Customer
Which of the following would NOT be included in a measure of GDP? (a) Ivanhoe
Publications exports $25 million of books to Ireland. (b) The U.S. government buys office
supplies worth $30 million from The Supply Closet. (c) You give your car a tune-up and
change the oil yourself. (d) You hire Larry's Lawn Care to cut your grass once per week
during the summer for $50/week. - ANS C.) You give your car a tune-up and
