Presentation Transcript

1. Economics Review Part II

   2012-2013
2. QUESTION 1: Suppose you could spend the next two hours playing video games or earning money by babysitting your baby sister. You are unable to do both because the time is limited. If you decide to babysit your sister, what is your opportunity cost? Playing ball in the park Playing video games Babysitting your sister Spending Hours studying
3. Answer: B. Playing video games
4. Question 2 Many Americans own cars made in Japan. Japan depends on oil it imports from Saudi Arabia. England relies on beef imports from Australia. Which conclusion can be drawn from these statements? All nations love the United States. Smaller nations don’t want to trade Japan is greedy. The World is interdependent
5. ANSWER: D. The World is interdependent
6. Question 3: . Which is an example of specialization? A region puts its resources into making those products it is most efficient at producing. A Bengals pass the football. A group of workers walks off a job until they are paid more. Mom and Pop make popcorn in the microwave
7. Answer: A region puts its resources into making those products it is most efficient at producing.
8. Question 4: Why do countries have to trade with one another? (2 point question)
9. ANSWER: Countries trade because they can not survive Countries are dependenton each other
10. Question 5 Where do consumers and producers meet to buy and sell? Entrepreneurship Marketplace Specialization Capital
11. B. Marketplace
12. QUESTION 6 Barry, the owner of Sokol’s Pizza recently bought a faster dough maker and a larger pizza oven for his shop. His sales have doubled. Which statement describes why Barry decided to buy a faster dough maker and a larger pizza oven. As a producer, he invested in capital goods to increase production B. As a producer, he paid less for items to make a profit. As a consumer, he wanted to have great tasting pizza. As a consumer, he wanted to more time with his girlfriend.
13. ANSWER A. As a producer, he invested in capital goods to increase production
14. Question 7 Fishermen in Ohio specialize in catching yellow perch, and fishermen in Alaska specialize in catching wild salmon. The states trade fish with each other. How do consumers benefit from the specialization of the fishing industry in Alaska and in Ohio? Consumers in Alaska and Ohio sell more fish. More types of fish are available to consumers Consumers in Alaska and Ohio fight over the fish
15. ANSWER B. More types of fish are available to consumers
16. Question 8 If the demand for a popular game increases, but the supply stays the same, what is likely to happen? The price will decrease The price will stay the same The game will quit being sold The price will increase
17. ANSWER: D. The price will increase
18. FINAL QUESTION Carson is an entrepreneur of a toy store and another entrepreneur opens a toy store in the area. What effect will the competition have on Carson’s store? How will Carson make changes to attract business to his toy store? FOUR POINT QUESTION
19. ANSWER: DESCRIBE IN DETAIL HOW BUSINESS OWNERS USE A FEW OF THE FOLLOWING: Lower Prices Higher Prices Higher Product Quality Better Customer Service Economic Incentives Advertising