Economics Intro Quiz

Something that causes a consumer to purchase a good or service is called:

• marginal benefit
• Incentive
• marginal cost
• The right decision

____________ are all the alternatives we give up whenever we choose one course of action over another.

• Opportunity Costs
• Trade Offs

Susan wants to play softball and work after school. She cannot do both, so she decides to play softball. What is her opportunity cost? 

• Playing softball
• The money earned from working 
• Being with her friends
• There is no opportunity cost because she spends no money 

What is the BEST definition of an entrepreneur?

• person who purchases raw materials from businesses and sells them to the government
• person who improves on an invention
• person who invents a brand new product
• person who takes a risk to produce and sell goods and services in search of profit

The situation in which unlimited wants exceed the limited resources available to fulfill those wants.

• Market 
• Tradeoff
• Scarcity 
• Equity 

The trees used to make lumber to build a new house is which factor of production?

• Labor
• Physical Capital
• Capital
• Land

Man-made resources used in the production process i.e. machines in a factory.

• Labour
• Capital
• Household
• Revenue 

A major contribution to productivity comes from investments in human capital

• TRUE
• FALSE

Entrepreneurs are considered the driving force in an economy because they

• own a great deal of land
• are the greatest number of people in an economy.
• start new businesses.
• provide most of the labor

people with all their efforts, abilities, and skills

• trade-offs
• standard of living
• good
• labor