Test Bank - Economics Principles and Practices by Glencoe

TEST BANK

, Economics

Principles and Practices
by

Glencoe




Test Bank
2017

,Chapter 1




Chapter 1 Introduction

Multiple-Choice Questions



1) Among of what is listed below is an example of Explain how the question of "what goods and services
to produce?" is Correct Answered by the command process?



A) Country’s government subsidies for affordable housing

B) laws regarding equal opportunity in employment

C) Country’s government allowance for the deduction of interest payments on private mortgages

D) Country’s government regulations concerning the dumping of industrial waste



Correct Answer: A



2) Opportunity cost is best defined as



A) the sum given up when choosing one activity over all other alternatives.

B) the sum given up when choosing one activity over the next best alternative.

C) the opportunity to earn a profit that is greater than the one currently being made.

D) the sum that is given up when choosing an activity that is not as good as the next best alternative.



Correct Answer: B



3) In a Trading place economy, Among of what is listed below is the most important guide affecting scarcity?



A) the needs and wants of consumers




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,Chapter 1




B) the price of the product

C) the degree to what the Country’s government is involved in the allocation of resources.

D) All of the above are equally important.



Correct Answer: A



4) Among of what is listed below is not considered by economists to be a basic resource or guide of
manufacturing ?



A) money B) machinery and equipment

C) technology D) unskilled labor



Correct Answer: A




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