Intro to Econ

What is economics?

• The study of money
• The study of how people choose to use limited resources
• The study of governments and citizens
• The study of the past

Which of the following is a characteristic of a scarce resource?

• Scarce resources must be expensive
• Scarce resources must be unlimited in quantity
• Scarce resources must have only one use
• Scarce resources must be desireable

What is the difference between a renewable resource and a nonrenewable resource?

• A renewable resource replenishes over time, while a nonrenewable resource does not
• A nonrenewable resource replenishes over time, while a renewable resource does not
• A renewable resource is natural, while a nonrenewable resource is not
• A nonrenewable resource is natural, while a renewable resource is not

Which of the following is NOT one of the three questions of economics?

• What to produce?
• How to produce?
• For whom to produce?
• When to produce?

What is scarcity?

• The study of how people choose to use limited resources
• The problem of unlimited wants and limited resources
• The problem of limited wants and unlimited resources
• The problem of having too few options

"Gold" is an example of which factor of production?

• Land
• Labor
• Capital
• Entrepreneurship

A pickaxe is an example of which factor of production?

• Land
• Labor
• Capital
• Entrepreneurship

A mine worker is an example of which factor of production?

• Land
• Labor
• Capital
• Entrepreneurship

What is the value of the next-best alternative when you make a trade-off?

• Fruit snacks
• Opportunity Cost
• Scarcity
• Second-Best

"Water" is an example of...

• A nonrenewable resource
• A renewable resource
• Entrepreneurship
• Labor