ATMAE Study Guide |Questions with 100% Correct Answers Graded A+

ATMAE Study Guide |Questions with 100% Correct Answers Graded A+ What type of labor force might a pottery factory want to focus on when hiring? highly skilled highly wealthy highly educated highly localized highly skilled Land is considered a resource because it is always available to use. is used to produce things. costs little or nothing to use. requires labor to be useful. is used to produce things One of the purposes of studying economics is to understand the reasons people purchase certain goods. reasons some resources become scarce. principles that apply to many personal choices. principles that influence the production of services. principles that influence the production of services What are the cons of a mixed market economy for most citizens? CHECK ALL THAT APPLY. There may be a sizable gap between rich and poor people. It can be very difficult for citizens to start private businesses. Citizens must pay for most basic necessities by themselves. There is no guarantee of steady employment for many citizens. Citizens may pay higher taxes than in other economic systems. Citizens often purchase their own health care and higher education. There may be a sizable gap between rich and poor people, citizens must pay for most basic necessities by themselves, there is no guarantee of steady employment for many citizens, citizens often purchase their own health care and higher education Which of the following would be a producer? someone owning a book store someone shopping in a grocery store someone putting gas in a car someone waiting in line at a bank someone owning a book store John has a large apple orchard. He has decided to bake pies and sell them at the local farmer's market. Which best describes John's use of economics? John is using available and renewable resources. John is relying on inexpensive labor costs to improve profits. John is using resources to produce both goods and services. John is assuming consumers will have limited need for his product. John is using available and renewable resources Which statement best describes the body paragraphs of an argumentative essay? The body paragraphs acquaint readers with the topic and set up the ideas that will be presented. The body paragraphs establish the focus of the essay and tell readers what the writer's position will be. The body paragraphs tie the essay together and tell readers what they have learned and should take away. The body paragraphs flesh out the argument and include counterclaims and evidence from research. The body paragraphs flesh out the argument and include counterclaims and evidence from research The proper style for an argumentative essay is formal To create the proper tone for an argumentative essay, a writer should include opinionated words. add complicated language. incorporate unusual stories. use a straightforward approach. use a straightforward approach In the lesson, you learned about Dave and his bakery. It was mentioned that "in one hour of work, Dave can make either 60 donuts or 30 bagels." Which might help Dave assess whether he should focus on bagels or donuts? It costs less to make bagels. Customers prefer donuts. Dave charges more for bagels. Donuts cost more to produce. customers prefer donuts Which of the following is influenced by personal economic choices? Check all that apply. the cost of your rent and utilities the resources you have available the amount of money you spend on a bus pass the money you decide to spend on leisure products the amount of money you put into your savings account the manner in which you balance your time between work and leisure the resources you have available, the money you decide to spend on leisure products, the amount of money you put into your savings account, the manner in which you balance your time between work and leisure What might happen if an economy is unable to produce wanted goods and services? People will go without them. People will look elsewhere for them. People will stop wanting them. People will focus on needs instead. people will look elsewhere for them Which of the following statements about opportunity cost are true? CHECK ALL THAT APPLY. It exists because resources are scarce. It influences consumers. It influences producers. It assists in anticipating profits. It encourages people to spread their resources around. It exists because resources are scarce, it influences consumers, it influences producers In a republic, elected officials create __ to regulate the economy laws In which way do producers try to differentiate themselves in monopolistic competition? price advertising product features image product features Which quality best describes a producer with an absolute advantage? efficient fast accurate prolific efficient A chart that shows the connection between consumer demand and price is a market schedule. market curve. demand curve. demand schedule. demand schedule Which best describes the relationship between consumers and producers? They usually ignore each other. They interact with each other. They agree on prices. They dislike each other. they interact with each other Both a demand curve and a demand schedule show how prices affect consumer demand. consumer demand affects income. prices affect complementary goods. consumer demand affects substitute goods. prices affect consumer demand Excess supply is created when price or __ move away from the equilibrium point. quantity What is the best definition of elasticity in economics? Elasticity of supply measures how the amount of a good changes when the producer hires more employees. Elasticity of supply measures how the amount of a good changes when the producer uses new materials. Elasticity of demand measures how the amount of a good changes when its price goes up or down. Elasticity of demand measures how the amount of a good changes when its distribution expands. Elasticity of demand measures how the amount of a good changes when its price goes up or down Which statements correctly explain price floors and price ceilings? Check all that apply. Ineffective price floors tend to be too high. Ineffective price ceilings tend to be too low. Price floors help producers by raising prices. Price ceilings help consumers by lowering prices. Effective price floors are set above equilibrium. Effective price ceilings are set below equilibrium. Price floors help producers by raising prices, price ceilings help consumers by lowering prices, effective price floors are set above equilibrium, effective price ceilings are set below equilibrium. Cost-push inflation occurs when consumers show an interest in purchasing more goods. producers need more money to make and distribute goods. the government prints more money and pushes prices up. consumers have more money to spend on goods and services. producers need more money to make and distribute goods Which is the most liquid form of money? cash and currency in circulation