Econ- Intro to Economics Test A

What is Economics?

• Social Science dealing with the study of how people satisfy seemingly unlimited and competing wants with the careful use of scarce resources.

• Social Science dealing with the study of how people satisfy limited and competing wants with the use of unlimited resources

• Social Science of dealing with the study of how people satisfy limited and competing wants with the use of scarce resources

• Social Science of dealing with the study of how people satisfy seemingly unlimited and competing wants with unlimited resources

What are the 4 Factors of Production?

• Money, Tools, Ideas, Workers

• Space, Labor, Land, Money

• Land, Labor, Capital, Entrepreneurship

• Capital, Labor, Entrepreneurship, Money

Trade offs involve

• Choosing more of one thing to get more of something else

• Choosing less of one thing to get less of something else

• Choosing less of one thing to get more of something else

• None of the Above

Opportunity Cost is define as

• The forgone benefit of the next best alternative when scarce resources are used for one purpose rather than another

• The forgone benefit of the next best alternative when unlimited resources are used for any necessary purpose

• All of the above

• None of the above

The basic problem of economics is…

• Scarcity

• shortages

• lack of choice

• overabundance of resources

To an economist, a want is…

• Something you do not have

• Something other than a basic survival need

• something you must have to survive

• something most people have

As an economic term, land includes…

• Work people do

• machinery

• natural resources

• knowledge

All economic choices involve…

• Trade-offs

• shortages

• destruction of resources

• tax dollars

In a trade-off, opportunity cost is the value of the…

• scarce resources

• Factors of production

• Action that was chosen

• next best alternative

Which of the following is not one of the primary factors of production?

• Labor

• productivity

• capital

• land