Scarcity, Trade-Offs, and Production Possibilities MCQs

Scarcity, Trade-Offs, and Production Possibilities MCQs

Answer these 20 Scarcity, Trade-Offs, and Production Possibilities MCQs and see how sharp is your knowledge of Scarcity, Trade-Offs, and Production Possibilities.
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1: Capital intensive are _____ that uses a large amount of capital

A.   Products

B.   Production

C.   Consumption

D.   Consumers

2: Command economy is an economy in which the _____ uses central planning to coordinate most economic activities.

A.   Market

B.   Government

C.   Consumer

D.   Producer

3: ______ sovereignty Is The concept that consumers vote with their dollars in a market economy

A.   Producer

B.   Consumer

C.   Product

D.   Market

4: Markets where households sell the use of their inputs to firms

A.   Factor markets

B.   Product Markets

C.   Competitive market

D.   Free market

5: Condition where the opportunity cost of producing additional units of a good rises as society produces more of that good is called

A.   Increasing opportunity cost

B.   Decreasing opportunity cost

C.   Constant opportunity cost

D.   Variale opportunity cost

6: Labor intensive are Production that uses a ____ amount of labor

A.   Large

B.   Medium

C.   Small

D.   Little

7: An economy that allocates goods and services through the private decisions of consumers, input suppliers, and firms is known as

A.   Mixed Economy

B.   Market Economy

C.   Command economy

D.   Planned economy

8: An economy where government and the private sector determine the allocation of resources is called

A.   Mixed Economy

B.   Market Economy

C.   Command economy

D.   Planned economy

9: Production possibilities curve is The available production technology that firms use to turn their inputs into outputs

A.   True

B.   False

10: Markets where products are bought by households and sold by firms are called

A.   Product Markets

B.   Competitive market

C.   Free market

D.   Imperfect market

11: Simple circular flow model is An illustration of the continuous flow of

A.   Inputs

B.   Payments

C.   Goods

D.   All of these

12: North Korea has a ______ economy.

A.   Socialist

B.   Mixed

C.   Market

D.   Command

13: What is the most common type of economy in the world today?

A.   Socialist

B.   Mixed

C.   Market

D.   Command

14: In a developed country, production is usually ______.

A.   Capital-free

B.   Labor-free

C.   Capital-intensive

D.   Labor-intensive

15: Tractors, bulldozers, and dump trucks are all examples of ______.

A.   Capital

B.   Labor

C.   Wages

D.   Services

16: In product markets, ______ flow to the firms.

A.   Payments

B.   Services

C.   Goods

D.   Wages

17: Who are the sellers in factor markets?

A.   Firms

B.   Households

C.   Governments

D.   Tenants

18: The simple circular flow diagram shows interactions between ______.

A.   Marketers and developers

B.   Rulers and subjects

C.   Governments and firms

D.   Households and firms

19: In the circular flow diagram, goods and services flow ______.

A.   Diagonally

B.   Upward

C.   Clockwise

D.   Horizontally

20: If a point is outside a production possibilities curve, what does it show?

A.   An efficient economy

B.   An inefficient economy

C.   An opportunity cost

D.   An economic impossibility

21: If an economy experiences growth, the production possibilities curve will ______.

A.   Shift outward

B.   Shift inward

C.   Go from a bowed curve to a straight line

D.   Contain more points but not move

22: If a nation’s economy operates inside of the production possibilities curve, it is ______.

A.   Unregulated

B.   Inefficient

C.   At full productivity

D.   At full employment

23: An economy operating at a point along the production possibilities curve represents ______.

A.   Waste

B.   Shortages

C.   Efficiency

D.   Growth

24: When an economy experiences growth, ______.

A.   Trade-offs disappear

B.   Scarcity still exists

C.   Efficiency is impossible to attain

D.   Consumer investment has been high

25: During colonial times in U.S. history, ______.

A.   Most people worked in customer service

B.   Only three percent of the people worked on farms

C.   Agriculture accounted for most jobs

D.   Manufacturing accounted for most jobs

26: ______ are examples of consumer goods.

A.   Machines and equipment

B.   Education and training

C.   Factories and warehouses

D.   Televisions and sofas