Eight Powerful Ideas MCQs

Eight Powerful Ideas MCQs

Answer these 40 Eight Powerful Ideas MCQs and assess your grip on the subject of Eight Powerful Ideas.
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1: Bads are Items that we do not desire or want such as terrorism, smog, or poison

A.   True

B.   False

2: The equipment and structures used to produce goods and services is called _____.

A.   Capital

B.   Labour

C.   Income

D.   Resources

3: ______advantage that occurs when a person, a region, or country can produce a good or service at a lower opportunity cost than others.

A.   Comparative

B.   Superlative

C.   Competitive

D.   None of the above

4: Economic goods are goods that are desirable but ____ in supply.

A.   Limited

B.   Limitless

C.   Reasonable

D.   None of above

5: The economy’s ability to produce more goods and services is economic _____.

A.   Growth

B.   Decline

C.   Shortage

D.   Value

6: When an economy gets the most out of its scarce resources is called______.

A.   Efficiency

B.   Deficiency

C.   Defect

D.   Shortage

7: Entrepreneurial ability is an ability to develop new products or _____existing products and/or production processes.

A.   Improve

B.   Maintain

C.   Enhance

D.   Cancel

8: Those who combine labor, and capital to produce services are called

A.   Businessman

B.   Managers

C.   Entrepreneurs

D.   Inverters

9: A benefit from consumption that spills over to those who are not consuming the good is called

A.   Efficiency

B.   Externality

C.   Internality

D.   Labor

10: Items we value or desire are called Goods

A.   True

B.   False

11: Goods that we cannot reach out and touch are called

A.   Tangible goods

B.   Intangible goods

C.   Club goods

D.   Normal goods

12: Labor is the _______ effort used in the production of goods and services

A.   Physical

B.   Mental

C.   None of these

D.   Both of these

13: ______ is the natural resources used in the production of goods

A.   Labor

B.   Land

C.   Machinery

D.   Items

14: Marginal thinking is Focusing on the ____ choices

A.   Additional

B.   Marginal

C.   Additional and Marginal

D.   Additional or Marginal

15: When the economy fails to allocate resources efficiently on its own is called

A.   Economy failure

B.   Market failure

C.   Resources failure

D.   Efficiency failure

16: An incentive that either increases costs or reduces benefits, resulting in a decrease in an activity or behavior is called

A.   Positive incentive

B.   Negative incentive

C.   Both of these

D.   None of these

17: ________ is the difference between the expected marginal benefits and the expected marginal costs

A.   Net benefit

B.   Net Costs

C.   Total benefit

D.   Total Costs

18: The value of the best forgone alternative that was not chosen is called

A.   Fixed Cost

B.   Opportunity cost

C.   Variable Cost

D.   Marginal cost

19: An incentive that either reduces costs or increases benefits

A.   Positive incentive

B.   Negative incentive

C.   Both of these

D.   None of these

20: Price controls are Government-mandated ________ prices

A.   Minimum

B.   Maximum

C.   Minimum or Maximum

D.   Minimum and Maximum

21: Output per worker is called

A.   Efficiency

B.   Productivity

C.   Effectiveness

D.   Creativity

22: Rational decision making is the idea that people do the best they can, based on their values and information.

A.   True

B.   False

23: If the expected marginal benefits are greater than the expected marginal costs

A.   Are known as

B.   Rule of irrational choice

C.   Rule of rational choice

D.   Rule of exchange choice

E.   Rule of individual choice

24: Services are ______ items of value provided to consumers

A.   Tangible

B.   Intangible

C.   Normal

D.   Club

25: Specializing is Concentrating on the production of _____ Goods

A.   One

B.   Few

C.   Both of these

D.   None of these

26: Items we value or desire that we can reach out and touch are called

A.   Normal Goods

B.   Tangible Goods

C.   Intangible Goods

D.   Club Goods

27: Office buildings, machines, and factories are all considered what type of economic resource?

A.   Capital

B.   Labor

C.   Land

D.   Tools

28: A person who combines the resources of labor, land, and capital to produce goods and services is called a(n) ______.

A.   Economist

B.   Entrepreneur

C.   Manager

D.   Manufacturer

29: Which of the following items is considered an economic good?

A.   Garbage

B.   Sunlight

C.   Peanuts

D.   Gravity

30: In economic decision making, the term opportunity cost refers to ______.

A.   All the things you give up when you make a choice

B.   The average costs incurred to gain a college degree

C.   The financial risk involved in pursuing an opportunity

D.   The value of the best alternative that was not chosen

31: In economics, the idea that people make the best choice they can, based on their values, information, and circumstances, is called ______.

A.   Expected marginal thinking

B.   Incentive-driven analysis

C.   Net comparative advantage

D.   Rational decision making

32: Economists consider the concept of need difficult to define because ______.

A.   “needs” place extra emphasis on scarcity

B.   It is hard to compare “needs” among people

C.   They consider “wants” and “needs” the same

D.   “needs” do not usually change over time

33: In economic decision making, the difference between expected marginal benefits and expected marginal costs is known as the ______.

A.   Best choice

B.   Net benefit

C.   Optimal cost

D.   Trade-off

34: Which of the following statements about incentives is most accurate?

A.   Incentives are the same thing as price controls.

B.   Incentives increase sales while reducing costs.

C.   Incentives may be either positive or negative.

D.   Incentives tend to have little impact on sales.

35: The voluntary exchange of goods and services is called ______.

A.   Capital

B.   Labor

C.   Trade

D.   Value

36: Production of citrus crops in Florida demonstrates what concept in economics?

A.   Competition

B.   Conservation

C.   Distribution

D.   Specialization

37: In a market economy, most of the resources are owned by ______.

A.   CEOs and other top executives

B.   Government-controlled firms

C.   Federal government agencies

D.   Private individuals and firms

38: What type of market failure occurs when a single seller dominates a market and excludes others from participating in mutually beneficial exchange?

A.   Allocation

B.   Efficiency

C.   Externality

D.   Monopoly

39: In a market economy, a trade-off often exists between the size of the economic pie and how it is divided, or between ______.

A.   Efficiency and equality

B.   Externality and income

C.   Property and opportunity

D.   Resources and incentives

40: Inflation is defined as ______.

A.   An increase in the overall price level in an economy

B.   Focused activity that assures the best use of resources

C.   Government-mandated minimum or maximum prices

D.   Measurable growth in real output per capita over time

41: Which of the following statements about economic growth rates is TRUE?

A.   Economic growth rates measure the distribution of an economy’s output and income.

B.   A slight difference in growth rates over a long period of time makes a big difference.

C.   A small improvement in economic growth would not help today’s poorest countries.

D.   Today’s richest countries will remain rich even if they experience slower growth rates.