Economics REVIEW (all terms)

Soil, minerals, air, water, and coal are all examples of

• fossil fuels
• conservation
• recycling
• natural resources

 The difference between a good and a service is that:

• Goods are available in unlimited quantities and services are not 
• Goods are tangible and services are not 
• Services are available in unlimited quantities and goods are not 
• goods help satisfy unlimited wants and services do not

What term describes the tools and technology used to make a product?

• capital goods
• human capital
• natural resources
• entrepreneurs

A person that takes a risk by starting a new business.

• human capital
• capital goods
• entrepreneur
• natural resources

Which item is an example of a good?

• You get your hair cut.
• You hire someone to cut your grass.
• You take a trip on the Grey Hound bus to New York.
• You buy a donut at Krispy Kreme.

 Which item is an example of a service?

• You get a hair cut.
• Your mother sells cookies at the church bake sale.
• You  visit your doctor and buy a set of false teeth.
• You go shopping at Walmart and purchase a new game system.

What is the most basic economic problem?

• Scarcity
• Labor
• Greed
• Capital

Opportunity cost is best defined as...

• The item you give up when making an economic decision 
• The price you pay to purchase something 
• The benefit you gain by making a economic decision 
• The amount of debt you take on by making a decision 

Which of the following is NOT one of the three basic questions all economic systems must answer? 

• What goods should be produced ?
• What is the price of the goods? 
• How should the goods be produced? 
• Who gets to consume the goods? 

The value of all goods and services produced within a country in a year

• Total Income Product
• Gross Domestic Product
• National Income Product
• Net Domestic Product