Every economy must answer each of the following questions except one. Which is the
exception?
a) Which goods will be produced?
b) Why are these particular goods produced?
c) Which resources should be used?
d) Who will actually consume the goods produced?
e) How should resources be combined t...
Best Grades | Must Pass | Latest Update | Correct Answers | 2024/ 2025
ECO213 Midterm Review TFC Questions
and Correct Answers | Latest Update
Every economy must answer each of the following questions except one. Which is the
exception?
a) Which goods will be produced?
b) Why are these particular goods produced?
c) Which resources should be used?
d) Who will actually consume the goods produced?
e) How should resources be combined to produce each product?
b) Why are these particular goods produced?
One disadvantage of a sole proprietorship as a form of business organization is that __
a) sole proprietorships cannot lower the transaction costs associated with contracting with
resource owners
b) sole proprietorships are less efficient than corporations, because they are less specialized in
production
c) owners of sole proprietorships can lose all their personal assets if the business is sued or
fails
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d) owners of sole proprietorships generally have very little control over how they operate
their businesses
e) owners of sole proprietorships generally find it difficult to negotiate separation agreements
with the other partners in the firm
c) owners of sole proprietorships can lose all their personal assets if the
business is sued or fails
Points inside the production possibilities frontier represent ___
a) the most desirable combinations of outputs
b) inefficiency or unemployment (or both)
c) currently unattainable combinations of outputs
d) currently unattainable combinations of resources
e) full and efficient use of all resources
b) inefficiency or unemployment (or both)
Division of labor increases productivity because ___
a) each worker must learn each of the numerous tasks in the total production process
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b) managers can force workers to produce goods that are valued more highly than the costs
of producing them.
c) tasks can be assigned according to individual tastes and abilities
d) specialization of labor allows for the introduction of cheaper, less sophisticated production
techniques
e) workers who repeatedly perform the same tasks become bored
c) tasks can be assigned according to individual tastes and abilities
In a command economy ___
a) no individual or group coordinates the economy
b) public ownership of resources is combined with free markets to direct economic activity
c) owners can sell their resources to the highest bidder
d) in theory, individual choices are reflected in collective decisions, and decisions are made by
central planners
e) a dictator makes every economic decision
d) in theory, individual choices are reflected in collective decisions, and
decisions are made by central planners
In recent decades, international trade has been
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