Econ Ch 1 Test

Economics is concerned with

• production

• distribution

• consumption

• all of the above

Economics is the study of how people use _______ resources to satisfy their wants.

• money

• marginal

• scarce

• costly

Economics is a social science so it uses empirical (observable) evidence to make hypotheses.

• True

• False

Which of these is not one of the 4 factors of production?

• land

• money

• capital

• labor

Opportunity cost means

• there is sometimes free lunches

• you have to make choices in life

• means you can't grow corn and soybeans

• there are costs given up in every situation

Individuals and businesses do not think about

• costs

• benefits

• incentives and disincentives

• none of the above

Free trade, protected private property, and freedom to use capital (make investments) =

• economics

• capitalism

• communism

• Democratic party

A market

• is a medium for transactions

• is a place where goods and services are bought and sold

• is where choices are made based on costs and benefits

• all of the above

Economic actors look at decisions on the margin (the change in or next one)

• True

• False

What is not a macroeconomic issue?

• Walmart's hourly wages

• unemployment rate

• long-term growth

• median national income