Virtual SC economics CP Final Exam Questions With Verified Solutions.

Virtual SC economics CP Final E xam Questions With Verified Solutions. It is generally believed that a sales tax a) hurts the poor b) hurts the wealthy c) is the only fair tax d) is unfair to the middle class - answer✔✔Correct Answer: A The study of economics involves ________________ a) explaining how people deal with scarci ty b) studying how things are made, bought, sold, and used c) explaining how incomes are earned and how jobs are created d) all of these - answer✔✔Correct Answer: D Which of the following descriptions best explains the meaning of opportunity cost? a) the i nitial 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✔✔Correct Answer: C A nation's wealth is determined by its ______________ a) accumulation of all tangible and intangible resources b) natural resources c) accumulation of all tangible products d) product possibilities frontier - answer✔✔Correct Answer: C Consumers waiting in long lines for a new product is an example of _______ ____ a) consumerism b) consumer rights c) consumer responsibilities d) scarcity - answer✔✔Correct Answer: D The efficient use of scarce resources leads to an increase in ____________ a) productivity b) investment c) scarcity d) capital - answer✔✔Correct Answer: A The most comprehensive measure of a nation's wealth is provided by its ______________ a) gross domestic product b) TINSTAAFL rating c) product possibilities curve d) capital goods - answer✔✔Correct Answer: A When a business needs to decide wheth er a certain action is worth the cost, the most helpful analysis would be a(n) ___________ a) production possibility comparison b) cost -benefit analysis c) economic model d) needs assessment - answer✔✔Correct Answer: B What is the main cause of a change i n quantity demanded? a) substitution b) changes in revenue c) change in price d) the income effect - answer✔✔Correct Answer: C What is the relationship between income and demand? a) a decrease in income increases demand b) a decrease in price decreases income c) an increase in price increases income