D089 - OA Study

D089 - OA Study Leave the first rating Students also studied Terms in this set (121) Save D089 - Module 10 - Open Markets Teacher 24 terms WGU_Econ_CI_Team Preview wgu d196 pre assessment 62 terms Kay2020Arlene Preview Accounting D196 72 terms gnweston12Preview WGU D 117 terms mke Principle 3 states that "Rational people think at the margin." Which of the following is an example of marginal thinking?

• Dan decides to spend $1,000 to repair his old car

because over the years he's spent many thousands of dollars maintaining the car.

• Dan decides to spend $1,000 to repair his old car

because he estimates that by spending this extra money he can get an extra year of use from the car.

• Dan decides to spend $1,000 to repair his old car

because an equivalent new car costs $24,000.

• Dan decides to spend $1,000 to repair his old car

because he needs to get to work.

• Dan decides to spend $1,000 to repair his old car because he estimates that by

spending this extra money he can get an extra year of use from the car.According to Principle 8, what determines the standard of living for a nation?

• The nation's ability to produce goods and services.
• The amount of money in the economy.
• The effectiveness of the nation's government.
• The nation's natural resources.
• The nation's ability to produce goods and services.

In which economic system are prices, production and job availability driven by competition and the laws of supply and demand?

• Traditional economy
• Command economy
• Market economy
• Growth economy
• Market economy

Identify a benefit of the traditional economic system.

• Trade is heavily dependent on bartering rather than

money.

• The government can transform the entire society to

achieve its national vision.

• People's roles and contributions are well understood.
• Innovation is rewarded and encouraged.
• People's roles and contributions are well understood.

During Cleopatra's reign, olive farmers were told by government officials how much of their olive crop was to be used for the production of olive oil. This is an example of which type of economic system?

• Traditional economy
• Command economy
• Market economy
• Growth economy
• Command economy

The Bureau of Labor Statistics tracks the U.S.unemployment rate and provides statistics for unemployment by age and race. This information is the focus of which branch of economics?

• Normative economics
• Personal economics
• Microeconomics
• Macroeconomics
• Macroeconomics

What type of income is paid to the LAND factor of production?

• Interest
• Profit
• Rent
• Wages
• Rent

What type of income is paid to the LABOR factor of production?

• Interest
• Profit
• Rent
• Wages
• Wages

What type of income is paid to the CAPITAL factor of production?

• Interest
• Profit
• Rent
• Wages
• Interest

What type of income is paid to the ENTREPRENEURSHIP factor of production?

• Interest
• Profit
• Rent
• Wages
• Profit

Sarah starts a market that sells produce from local farms.She rented the storefront, worked with farmers to get produce and advertised. What factor of production is she providing by taking risks and bringing this service to the market called?

• Land
• Labor
• Capital
• Entrepreneurship
• Entrepreneurship

Which of the following items is not a factor of production?

• An oil rig in the Gulf of Mexico
• A factory worker in Michigan
• A bank loan to a farmer in Iowa
• An orange grove in Florida
• A bank loan to a farmer in Iowa

What term describes the condition that occurs when human wants are unlimited but the resources to meet those wants are limited?

• Opportunity cost
• Production Possibilities
• Trade-off
• Scarcity
• Scarcity

Feedback: Scarcity is the condition that occurs when there are limited resources and unlimited wants.Karen is paid by the hour and her boss offers her the option to stay or to leave work early. Which of the following is an opportunity cost of clocking out and leaving work early?

• The time it takes her to drive home.
• The extra free time she will get by leaving early.
• The additional money she would earn by finishing her

shift.

• The money she earned in her shift so far.
• The additional money she would earn by finishing her shift.

Feedback:When Karen leaves work early she gives up the money she would have

earned by continuing to work.

The production possibilities frontier is based on which of the following assumptions? Choose 2.

• All resources are fully employed.
• Markets are in equilibrium.
• Technology is variable.
• Resources are fixed.
• All resources are fully employed.

Feedback:The PPF is based on the following assumptions: 1. Resources are fixed,

• All available resources are fully employed, 3. Only two things are produced, 4.

Technology is fixed.

• Resources are fixed.

Feedback:The PPF is based on the following assumptions: 1. Resources are fixed,

• All available resources are fully employed, 3. Only two things are produced, 4.

Technology is fixed.Atlantis is currently producing combination D on its PPF.What trade-off must Atlantis make in order to produce combination E?

• Atlantis must give up 50 pounds of fish to produce an

additional 200 pounds of potato.

• Atlantis must give up 400 pounds of potato to produce

650 pounds of fish.

• Atlantis must give up 600 pounds of fish to produce

600 pounds of potatoes.

• Atlantis must give up 200 pounds of potato to produce

an additional 50 pounds of fish.

• Atlantis must give up 200 pounds of potato to produce an additional 50

pounds of fish.

Feedback:When Atlantis changes its output combination from D to C, the quantity

of fish produced changes from 600 to 650 pounds. There is a gain of 50 pounds of fish. That change from D to C requires the quantity of potatoes produced to fall from 400 to 200 pounds. This means that Atlantis must give up 200 pounds of potatoes to gain 50 pounds of fish.Based on the PPF for Atlantis, how would you describe combination G?

• Efficient and attainable
• Unattainable
• Inefficient and unattainable
• Inefficient and attainable
• Unattainable

Feedback:Points that lie outside of the production possibilities frontier are

unattainable.Based on the shape of Atlantis' PPF, which of the following statements is true? Choose 2.

• There are increasing opportunity costs.
• Markets are in equilibrium.
• Resources are heterogeneous in production.
• Technology is improving.
• There are increasing opportunity costs.

Feedback:Heterogenous inputs generate increasing opportunities and create a

bowed out PPF.

• Resources are heterogeneous in production.

Feedback:Heterogenous inputs generate increasing opportunities and create a

bowed out PPF.