Understanding Economics Ch. 1

What determines a country's wealth?

• natural resources
• all its tangible and intangible resources
• its total of all tangible products
• the amount of its goods and services

When people wait in line on Black Friday to get a 70" TV, this is an example of

• scarcity
• consumerism
• product marketing
• consumer responsibility

A diamond is worth more than water. This illustrates what concept of economics?

• consumerism
• paradox of value
• specialization
• human capital

Reliance on others to produce goods and services is

• consumerism
• scarcity
• economic interdependence
• wealth

Choosing to make cars instead of trucks results in

• opportunity cost
• increased wealth
• expanding the production possibilities curve
• TINSTAAFL rating upgrade

Each worker learns one task very well

• division of labor
• human capital
• labor cost
• specialization

What is the fundamental problem of every society?

• labor costs
• scarcity
• economic interdependence
• market fluctuation

Deciding whether or not a purchase is worth the cost could best be done with a

• production possibilities curve
• factor market evaluation
• online search
• cost-benefit analysis

Using resources more efficiently increases

• productivity
• capital
• income
• investment

Food is an example of a

• durable good
• non-durable good
• want
• resource