Economics: Chapter 1 Review

Economics is about making choices.

• True
• False

An example of a positive economic statement is "The U.S. unemployment rate is 5.8%."

• True
• False

Markets are the means by which buyers & sellers carry out exchange.

• True
• False

Goods & Services are bought and sold in resource markets.

• True
• False

You should ignore sunk cost in making economic choices.

• True
• False

Your opportunity cost depends on your alternatives.

• True
• False

Productive resources are also called factors of production.

• True
• False

Which of the following is a service?

• a restaurant meal
• a guitar lesson
• dry-cleaning fluid
• a concert t-shirt

Scarcity arises because all societies have

• limited productive resources to satisfy unlimited wants
• unlimited productive resources to satisfy limited wants
• limited needs and unlimited wants
• unlimited needs and limited wants

Inputs used to create goods & services that people want are called

• natural resources
• productive resources
• exhaustible resources
• renewable resources