Question 1

An answer to the question "How are goods produced?" determines:

Accepted Answer

How goods are produced is determined by how resources are combined in the production process. This includes the use of labor, capital, and natural resources, which are all essential factors of production. The specific combination of resources used affects the efficiency and cost of production, which can then determine the types and quantities of goods produced. However, the answer does not determine who receives the goods produced or how tastes and preferences are determined, as those are separate factors that also play a role in the production and distribution of goods.

Question 2

One question that arises when determining for whom goods and services should be produced is:

Accepted Answer

Determining for whom goods and services should be produced involves making decisions about the distribution of the economic pie. This requires considering factors such as income distribution, consumer preferences, and social welfare. Choices B and C are not relevant to this question, as they relate to trade and international economics. Choice D is also not relevant, as it pertains to a separate issue of labor standards.

Question 3

A free good is different from a scarce good because it is:

Accepted Answer

A free good is one that is abundant and not limited in supply, therefore it is not scarce. The other options are incorrect.

Question 4

An answer to the question "For whom" determines:

Accepted Answer

The answer to the question "For whom" determines who gets the goods and services produced.

Question 5

The problem of determining how goods and services should be produced is a problem of deciding:

Accepted Answer

The problem of determining how goods and services should be produced refers to the allocation of resources towards the production of goods and services. The optimal combination of resources must be determined in order to produce goods and services efficiently and at the lowest possible cost. This involves deciding how much of each resource to use and in what proportion to use them. Therefore, option A is the correct choice. Options B and C are related to international trade and do not directly relate to production decisions. Option D is related to the issue of property rights rather than production decisions.

Question 6

The statement that "there is no such thing as a free lunch" means:

Accepted Answer

The statement "there is no such thing as a free lunch" reflects the concept of opportunity cost, which means that whenever a choice is made, a cost is incurred in terms of the opportunities forgone. This is because any production or consumption involves the use of scarce resources that have alternative uses. Therefore, the best answer is B, which accurately describes this economic principle. The other choices are not relevant to the meaning of the statement.

Question 7

The problem of determining what goods and services society should produce exists because:

Accepted Answer

The problem of determining what goods and services society should produce exists because resources are scarce. Every society must make choices about how to allocate its resources, such as whether to produce more of one good or service at the expense of another. This problem arises precisely because resources are scarce and must be used efficiently, effectively, and sustainably.

Question 8

The problem of determining what goods and services society should produce:

Accepted Answer

The problem of determining what goods and services society should produce exists because there are not enough resources to provide all the goods and services that people want to purchase. This means that choices and trade-offs have to be made about which goods and services should be produced with the limited resources available. If all goods and services were scarce, there would be no problem of determining what to produce because everything would be in demand. On the other hand, if the government owned all resources, there would still be choices and trade-offs to be made about how to allocate those resources efficiently.

Question 9

Suppose that voters in your community pass a one-cent sales tax increase to fund education, knowing full well they will have to forgo other goods they typically consume. This primarily addresses the economic question of:

Accepted Answer

The question of what goods and services a society should produce is addressed by the decision to allocate funds to education through a sales tax increase, which may result in a reduction in the consumption of other goods. This decision reflects the prioritization of education as a societal need over other goods that could be consumed with the same funds.

Question 10

The answer to, "What goods are to be produced?" deals with:

Accepted Answer

The question directly asks about the kinds and quantities of goods and services produced, which falls under the category of "what goods are to be produced". Therefore, the answer is D - the kinds and quantities of goods and services produced. A, B, and C are not the direct focus of the question.

Question 11

The fundamental economic questions that every economic system must answer are:

Accepted Answer

The three fundamental economic questions are what goods and services will be produced, how they will be produced, and for whom they will be produced. These questions are commonly answered in terms of the allocation of resources, which includes factors of production such as land, labor, and capital. Therefore, option A is the correct answer.

Question 12

Whenever a choice is made:

Accepted Answer

Whenever a choice is made, there is an opportunity cost involved. This means that the cost of choosing one option is the value or benefit of the next best option that is forgone. It is not necessarily easy to measure in dollar terms, and scarcity is often the reason why choices have to be made in the first place. A free good may be involved, but it is not a requirement for there to be a cost associated with a choice.

Question 13

Opportunity cost is:

Accepted Answer

Opportunity cost is the highest valued other choice that could have been made. It refers to the cost of not choosing the next best alternative. Therefore, the best choice is always the one with the lowest opportunity cost.

Question 14

The three fundamental economic questions of what, how, and for whom:

Accepted Answer

The three fundamental economic questions exist because of scarcity, which means that there are limited resources and unlimited wants. This applies to any economic system, whether it is socialist or capitalist. Therefore, option A is the correct answer.

Question 15

In the 1970s, the Organization of Petroleum Exporting Countries (OPEC) tripled the price of petroleum, causing automobile manufacturers to look for ways to produce more fuel-efficient cars by substituting aluminum and plastic for steel. This was primarily a response to the economic question of:

Accepted Answer

The decision to substitute aluminum and plastic for steel in automobile manufacturing was primarily driven by the economic question of how goods and services should be produced. Manufacturers were looking for ways to increase efficiency and reduce costs in response to the tripled price of petroleum imposed by OPEC, which was a key factor in the production process. This question is related to the allocation of resources and the most efficient use of inputs to produce output, which falls under the category of the economic question of how goods should be produced.

Question 16

In the 1930s, the federal government established the social security system to provide a minimum level of income to elderly and disabled people. This primarily addressed the economic question of:

Accepted Answer

The social security system was established to provide financial support to elderly and disabled people who may not have sufficient income or savings to meet their basic needs. This addresses the economic question of "For whom shall the goods be produced?" which focuses on the distribution of goods and services to individuals based on their needs and ability to pay.

Question 17

The problem of determining for whom to produce exists because:

Accepted Answer

The problem of determining for whom to produce arises because resources are scarce and choices must be made about which goods and services to produce. This means that not everyone can have everything they want, and a decision to produce for one group of consumers means that resources are not available to produce for another group. This is the fundamental economic problem of scarcity. Government regulations, taxes on firms and consumers are relevant factors, but they are not the root cause of the problem of determining for whom to produce.

Question 18

A free good is:

Accepted Answer

A free good is a good that has no opportunity cost, meaning it is available without sacrificing any other goods or resources. It does not necessarily mean that the good is abundant or low in scarcity.

Question 19

Whenever a choice is made:

Accepted Answer

The opportunity cost of a choice is the highest-valued other choice that could have been made. Therefore, the best choice is the one that has the lowest opportunity cost.

Question 20

The problem of determining how goods and services should be produced exists because:

Accepted Answer

The problem of determining how goods and services should be produced exists because most goods can be produced with different combinations of resources. This creates a problem of deciding which combination of resources should be used to produce a good or service in the most efficient and effective way.

Quiz 1: Economics: the Study of Choice

An answer to the question "How are goods produced?" determines:

One question that arises when determining for whom goods and services should be produced is:

A free good is different from a scarce good because it is:

An answer to the question "For whom" determines:

The problem of determining how goods and services should be produced is a problem of deciding:

The statement that "there is no such thing as a free lunch" means:

The problem of determining what goods and services society should produce exists because:

The problem of determining what goods and services society should produce:

Suppose that voters in your community pass a one-cent sales tax increase to fund education, knowing full well they will have to forgo other goods they typically consume. This primarily addresses the economic question of:

The answer to, "What goods are to be produced?" deals with:

The fundamental economic questions that every economic system must answer are:

Whenever a choice is made:

Opportunity cost is:

The three fundamental economic questions of what, how, and for whom:

In the 1970s, the Organization of Petroleum Exporting Countries (OPEC) tripled the price of petroleum, causing automobile manufacturers to look for ways to produce more fuel-efficient cars by substituting aluminum and plastic for steel. This was primarily a response to the economic question of:

In the 1930s, the federal government established the social security system to provide a minimum level of income to elderly and disabled people. This primarily addressed the economic question of:

The problem of determining for whom to produce exists because:

A free good is:

Whenever a choice is made:

The problem of determining how goods and services should be produced exists because: