Economics Chapter 2 Test
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Select the correct choice to each of the following questions
- 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.
- 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
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