Ch. 1 Principles of Economics

a situation that occurs when a producer cannot offer a particular good or service at the current price

• goods
• economics
• shortage
• labor

the effort that a person devotes to a task, for which the person is paid

• goods
• economics
• shortage
• labor

physical objects such as baseballs or umbrellas

• goods 
• services
• economics
• labor

Which of the following are factors of production?

• capital and land
• scarcity and shortages
• technology and productivity
• economics and business decisions

Which of the following is an example of using physical capital to save time and money?

• building extra space in a factory to simplify production
• hiring more workers to do a job
• switching from oil to coal to make production cheaper
• lowering worker's wages to increase profits

To what part of an industry does a worker's education contribute?

• technology
• physical capital
• human capital
• scarce resources

the study of how people make decisions to satisfy their needs and wants

• goods
• resources
• economics
• scarcity

Which of the following is an entrepreneur?

• a person who earns a lot of money as a singer or dancer
• aperson who creates a game and sells it to a game manufacturer
• a person who starts an all-organic cleaning supplies business that employs others
• a person who works as a highly paid computer programmer

What is the difference between a shortage and scarcity?

• a shortage can be temporary or long-term, but scarcity always exits.
• A shortage results from rising prices; scarcity results from falling prices.
• a shortage is a lack of all goods and services; scarcity concerns a single item.
• There is no real difference between a shortage and scarcity.

What does an economist mean by the term land?

• farmland only
• food crops grown on farmland as well as the farmland itself
• goods and services tht are produced from the land
• all natural resourcces used to produce goods and services