Civics & Economics Goal 7 EOC Review
1. The payments for land, labor, capital, andentrepreneurial ability respectively are (7.01)
A rent, profit, wages, and interest
B profits, wages, interest, and rent
C rent, wages, interest, and profit
D wages, rent, profit, and interest
2. If a nation encourages entrepreneurship,then which of the following is likely tooccur? (7.01)
A very little change in overall production of goods and services
B the development of many new productsand process methods
C fewer applications to the United StatesPatent Office
D a decline in the number of new businesses started
3. Use the information from the scenariobelow to answer the following question.
Amanda decided to open a carpet cleaning business. She hired tenemployees, rented a small commercialoffice with storage, and took out abusiness loan to buy three vans andcarpet cleaning equipment. Two ofAmanda’s employees ordered suppliesand processed the paperwork; oneemployee was responsible for marketingand the rest actually cleaned carpets.After one year, Amanda’s CarpetCleaning cleared $40,000 after expenses.
Which of the following BEST representscapital investment? (7.01)
A renting commercial office space
B marketing the business
C purchasing carpet cleaning equipment
Dhiring ten employees
4. Entrepreneurship and labor interact inwhich of the following ways? (7.01)
A Entrepreneurship makes decisions about the use of labor.
B Labor makes decisions about the use ofentrepreneurship.
C Both entrepreneurship and labor receive payment in the form of interest.
D Both entrepreneurship and labor receivepayments in the form of rent.
5. An individual decides to pay $8 to see amovie instead of buying an $8 meal. Whatis the opportunity cost of the movie? (7.03)
A the satisfaction missed by not eating the meal
B the $8 paid to see the movie
C the time spent watching the movie
D the satisfaction received by going to the movie
6. The MOST important factor affectingconsumer spending is (7.04)
A the level of current consumer debt
B the amount of assets held by consumers such as homes, cars, stocks, or bonds
C the expectations of consumers of what the economy will be in the future
D the level of current consumer income
7. Kim works on an automobile assemblyline. Kim’s job illustrates a productionprocess that relies on (7.04)
A autonomous work groups
B team decision making
C quality circles
D division of labor
8. Which of the following is an example ofan investment in human capital? (7.05)
A A company builds a new factory.
B A state puts in a new highway.
C A person goes to college.
D A country builds new schools.
9. Country X is currently investing heavilyin research and development (R&D),mainly in the areas of information andcommunications technologies. All of thefollowing are predictable results of theseinvestments EXCEPT (7.05)
A future economic growth
B future increases in labor productivity
C the creation of labor-intensive industries
D the creation of advanced capital goods
10. In which economic system does thegovernment own the means ofproduction? (7.06)
A traditional
B mixed
C market
Dcommand
11. The idea that producers make goods thatconsumers like and are willing to pay foris a principle of which of the following economic systems? (7.06)
A traditional
B command
C market
Dsocialism
12. In the American economy, the goal ofeconomic equity is MOST connected with (7.06)
A giving participants a fair chance to succeed
B restoring laissez-faire capitalism
C creating limits on corporate profits
Dsubsidizing businesses that would otherwise fail
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