Basic Economic Concepts Test

Front

Resources (factors of production) are

Back

scarce for individuals and scarce for societies.

Front

Any resources that are made by humans, such as machines, and used to create other goods and services are called

Back

capital.

Front

Jobs that produce services refer to the production of non-tangible economic products such as employment in an area that performs duties or work for other people (doctor, teacher, barber, etc.).

Back

employment in an area that performs duties or work for other people (doctor, teacher, barber, etc.)

Front

Which of the following would NOT be considered a factor of production?
trees used for making paper, Jay-Z, a worker at Wal-Mart, an iPhone used for text messaging between you and your friend

Back

an iPhone used for text messaging between you and your friend

Front

A computer, smart phone, and projector are all goods used for a business. In economics, these are known as

Back

physical capital

Front

You were recently hired as an advocate for energy conservation by the “Go Green Society of America!”. Your first job was to consult local business people on methods for cutting back on their consumption of energy. In this example, you were the _______________, and were providing a _______________ for the businesses.

Back

laborer/service

Front

Tradeoffs are best defined as

Back

the value of the next best alternative use of time money or resources

Front

According to economics, there is no such thing as a free lunch. What might you have given up when invited to lunch at Taco Bell? Options: time, leisure, recreation, all of the above

Back

all of the above

Front

The government of a country must make a decision between increasing military spending and subsidizing wheat farmers. This kind of decision is a

Back

guns or butter issue.

Front

Which of the following is a correct statement about production possibilities frontiers? An economy can produce only on the production possibilities frontier. An economy can produce at any point inside or outside a production possibilities frontier. An economy can produce at any point on or inside the production possibilities frontier, but not outside the frontier given the current resources. An economy can produce at any point inside the production possibilities frontier, but not on or outside the frontier.

Back

An economy can produce at any point on or inside the production possibilities frontier, but not outside the frontier given the current resources.