Module 5 Lesson 1 Review - Economics Basics

Front

Which statement best characterizes opportunity cost?

Back

The value of a product that you give up in a tradeoff with another product.

Front

How are natural resources, labor, capital, and entrepreneurs related?

Back

Their supply is limited.

Front

Which of the following is NOT a factor of production?
land and natural resources,
labor,
capital,
food chain

Back

food chain

Front

Suppose a farmer uses skills and tools to grow strawberries on a farm, and she sells them at a market. A drought destroys the farmland which results in fewer crops. Consumers have to buy strawberries at a higher price. This situation would cause

Back

contraction

Front

system of producing, selling, and buying goods and services

Back

economy

Front

The money an individual or business has left after paying expenses is called

Back

profit

Front

Nations that rely on trade with one another for supplies of scarce resources experience

Back

economic interdependence

Front

When a factor of production is increased, the result can be a(n) _______________________ of the business.

Back

expansion

Front

The price of a good or service is usually determined by the laws of supply and demand.

Back

TRUE

Front

Based on this graph, what happens to the demand for a product when the price increases?

Back

The demand decreases.