Economics Ch 1 Review

These are necessary to survive

• Wants
• Needs
• Phones
• Scarcity

The combination of vision, skills, and risk taking that is needed to create a business is called what?

• Capital

• Entrpreneurship

• Labor

• Land

When people need to make economic choices due to a lack of available goods and money, this is called _________________________ in economic terms.

• trade offs
• scarcity
• opportunity cost
• incentive

Country X has a barell of crude oil and they knw that they can produce several items from this barrell.  If the following is their priority list, What is their opportunity cost of choosing heating oil
1. Heating oil
2. Gasoline 
3. Plastics
4. fertilizer

• Heating Oil
• Plastics 
• Gasoline 
• Fertilizer

A maker of goods or services is called what?

• Producer
• Consumer
• Salesperson
• That guy

What are the 4 Factors of Production?

• Land, capital, money, entrepreneurs

• Land, capital, labor, entrepreneurship

• Capital, money, supply, demand

• Labor, capital, supply, demand

What does point X represent on the PPC?

• Efficiency
• Unattainable / impossible
• Inefficency
• Nothing

What does point B represent?

• Production at greater than the country's minimum potential
• Production is less than the country's minimum potential
• Production is greater than the country's maximum potential
• Production at the country's maximum potential

What is a PPC?

• Possible Production Curve
• Production Possibilities Curve
• Probable Projection Curve
• Projected Possibilities Frontier

Happiness and satisfaction refers to which economic term?

• Scarcity
• Opportunity Cost
• Utility
• Economics