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Economics Chapter 2 Test

9 Questions
Economics Quizzes & Trivia

Select the correct choice to each of the following questions

Questions and Answers
  • 1. 
    The value of the best alternative forgone when an activity is chosen can best be defined as
    • A. 

      Sunk Cost

    • B. 

      Oppurtunity Cost

    • C. 

      Capitalism

    • D. 

      Advantage

  • 2. 
    Absoulute Advantage is:
    • A. 

      The ability to make something using fewer resources than other producers

    • B. 

      Is subjective

    • C. 

      Requires Time

    • D. 

      Requires Information

  • 3. 
    Sunk cost is a cost that has already been what?
    • A. 

      Incurred and cannot be recovered

    • B. 

      Affecting economic decisions

    • C. 

      Varying with circumstances

    • D. 

      None of the Above

  • 4. 
    The law of Comparative Advantage is defined as
    • A. 

      Cost that has been incurred

    • B. 

      Using fewer resources than other producers

    • C. 

      Advantatges over other producers

    • D. 

      The individual firm, religon,or country with the lowest oppurtunity cost if producing a particular good should speacialize in that good

  • 5. 
    Using fewer resources then other producers is:
    • A. 

      Absolute Advantage

    • B. 

      Comparative Advantage

    • C. 

      Sunk Cost

    • D. 

      None of the Above

  • 6. 
    Comparative Advantage is:
    • A. 

      Cost that has been incurred

    • B. 

      Oppurtunity cost of a company

    • C. 

      The ability to make something at a lower oppurtunity cost then other producers

    • D. 

      Ability to use fewer resources

  • 7. 
    The direct exchange of one good for another without using money is a
    • A. 

      Barter

    • B. 

      Exchange

    • C. 

      Trade

    • D. 

      None of the above

  • 8. 
    Economic growth does what to the economy
    • A. 

      Increases

    • B. 

      Decreases

    • C. 

      Nothing

    • D. 

      None of the above

  • 9. 
    Private Propety rights allows owners to do what:
    • A. 

      Rent

    • B. 

      Sell

    • C. 

      Use

    • D. 

      All of the Above