Econ Review for Test 1

___ exists when demand is greater than supply but will be corrected when supply catches up.

• supply
• shortage
• scarcity

___ are people who start their own businesses or combine factors of production in new ways.

• entrepreneurs
• dictators
• capitalists

a non durable good lasts for ___ or less years with regular use.

• 2
• 3
• 4
• 5

Natural resources needed to produce goods and services are which type of factor of production?

• land
• labor 
• capital

The value of the next best alternative that had to be given up is called _____

• labor
• opportunity expense
• opportunity cost
• marginal cost

A company's office building are an example of which factor of production?

• land
• labor
• capital
• technology

Everything that can be produced in a given year with a fixed amount of resources is called...

• production possibilities
• production schedule
• national production

study this graph. How much military goods can we produce at point B?

• 1 billion
• 2 billion
• 7 billion

What could cause the movement in the graph?

• the stock market falls
• A new cash register system that speeds up taking a customer's order
• adding more workers even though there isn't enough work for the ones you already have

Time can be considered a resource

• True
• Fals