Quiz #2

Question 1

Economic development can be described as….
a. an effort to create a stable economy

b. an effort to increase economic performance

c. an effort help companies become more profitable

d. All of the above

e. Both a and c

Question 2

What would be the correct formula for calculating wealth?

a. Cash - Liabilities = Wealth

b. Assets - Cash + Liabilities = Wealth

c. Assets - Liabilities = Wealth

d. None of the above

Answer 2

c. Assets - Liabilities = Wealth

Question 3

What percentage of businesses are either breaking even or losing money?
a. 90%

b. 20%

c. 50%

d. None of the above

Question 4

What is a good strategy for helping businesses become more profitable?

Question 5

What is the definition of scarcity?

Answer 5

Scarcity refers to the inherently limited nature of society’s resources, given society’s unlimited wants and needs.

Question 6

Name four examples of limited resources.

Answer 6

Time, money, land, water

Question 7

If the rent for an apartment is $1,325 per month, what would the minimum annual salary need to be?

Answer 7

Minimum salary would need to be $56,785. You take the amount of rent which is $1325 and divide it by 28% which is 1325/.28 = $4,732. Next you take that amount and multiply it by 12. So, $4,732 x 12 = $56,785. $56,785 is the minimum annual salary you would need.

Question 8

Which of the following statements is false? Select all that apply.
a. Trade-offs describe what we are giving up

b. Trade-offs describe how much we are giving up

c. Opportunity costs describe what we are giving up

d. Opportunity costs describe how much we are giving up

Answer 8

b. Trade-offs describe how much we are giving up

Question 9

Today is Saturday and you have three choices. You can stay at home, work an 8 hour shift for $15 per hour or work a 5 hour shift for $20 per hour. What is the opportunity cost if you stay at home?

A. $75

B. $120

C. $220

D. $100

E. None of the above

Question 10

What is marginal thinking?

Answer 10

Marginal thinking is when decision-makers have to evaluate whether the benefit of one more unit of something is greater than its cost.

Question 11

True or false: Households can be described as both buyers and sellers?

Answer 11

True

Question 12

True or false: Time put into a job to get a paycheck in return can be described as a product markets transaction?

Question 13

Use the following information from Effective Reading and Notetaking document in the Start Here Module in Canvas to answer the following questions.

1. What is recursive reading and why is it important?
2. Name the five reasons for highlighting as you read.
3. What are the main benefits of outlining?
4. Describe the Cornell method and why it is effective.

Answer 13

1. What is recursive reading and why is it important?
   Recursive reading is active reading. Recursive reading is important for several reasons, the reader is bringing prior knowledge about the subject. They are asking themselves pertinent questions about the topic being read. They are evaluating what is being read.
2. Name the five reasons for highlighting as you read.
   a. To organize. b. To emphasize. c. To Remind. d. To understand.
3. What are the main benefits of outlining?
   The main benefits of outlining is how organized and familiar the material is.
4. Describe the Cornell method and why it is effective.
   The Cornell method is where a standard piece of note paper is divided into three sections separating general information from notes and questions. Leaving a section at the bottom for summary. The cornell method provides a well organized set of notes to help study and review throughout the duration of the course.