Economics Unit 1 Test Review

Economics Unit 1 Test Review

Terms, Factors of Production, and PPF

Let's do a basic term review first

Good luck!

Multiple Choice

Which of the following is NOT a need?

• water

• shelter

• food

• transportation

Multiple Choice

One way to think about labor as a factor of production is to think of it as:

• ideas

• human work

• tools

• things that are related to the land

Multiple Choice

One way to think about entrepreneurship as a factor of production is to think of it as:

• ideas

• human work

• tools

• things that are related to the land

Multiple Choice

One way to think about natural resources as a factor of production is to think of it as:

• ideas

• human work

• tools

• things that are related to the land

Multiple Choice

One way to think about capital as a factor of production is to think of it as:

• ideas

• human work

• tools

• things that are related to the land

Multiple Select

Which of these is a part of the natural resources needed for production of a home? There is more than one correct answer here.

• electrician

• copper

• wrench

• timber/lumber

• rock

Multiple Choice

Which of these is a part of the capital resources needed for production of a home?

• plumber

• architect

• hammer

• timber/lumber

Multiple Select

Which of the following are examples of incentives? There is more than one answer.

• buy one/get one sales

• coupons

• postcard from the store thanking you for your purchase

• "dollars" - credit/coupon for a future purchase

• having a wide selection of colors

Multiple Choice

When there is a possible shortage of a given item, we call it:

• scarcity

• consumption

• surplus

• demand

Multiple Choice

PPF stands for

• production–possibility frontier

• production, products, and finance

• possible products from finances

• possible product finalization

Fill in the Blank

Using or purchasing an item is called

Fill in the Blank

Making an item is called

Multiple Choice

When someone focuses on producing just one kind of thing or perfects a service, we call it:

• incentive

• shortage

• specialization

• PPF

Multiple Choice

Which of the following is an example of specialization?

• Mya only does dreadlocks at her salon

• George has a restaurant where they serve Italian, Mexican, and American dishes.

• Dequan is a general practitioner (a doctor who can see you for any issue)

• Sonja is the manager at Target

Multiple Select

Which two of the following would most likely be considered services?

• hair salon

• gas station

• clinic/doctor

• grocery store

• pharmacy

Multiple Choice

Nichole went to the store to purchase breakfast cereal. She chose to purchase Apple Jacks. Which of the following is her opportunity cost?

• the gas and time it took to drive to the store

• the cost of the Apple Jacks

• the other cereals she did not buy

Thank you for reviewing for you upcoming test.

- Ms. G