Unit 1 Economics

Which of the following best defines economics?

• How people create their own products

• The study of how individuals exchange goods and services

• People use their scarce resources to satisfy unlimited wants

• How governments create products

Which of the following statements correctly defines the term entrepreneur?

• A person who improves an existing product

• Person who develops a new product

• A person who tries to earn profit

• All answers apply

Which of the following is not an example of a capital resource?

• The knowledge people gain to increase their productivity

• The creation of a new hybrid fruit

• The computers used in school

• The distribution center of Lowe's

When you choose a night with friends over studying for your final exam, what is your opp. cost?

• The time you spent with your parents

• The time you spent with your friends

• The possibility of earning a higher grade

• The possibility of disappointing your friends

What is opportunity cost?

• The value of the best alternative

• The value of what you cannot recover

• The value of your time

• The value of cost benefit analysis

If a PPF shifts outward, this means?

• Economic growth

• Economic decline

• Greater labor force

• Lower labor force

What does point Y represent on the graph?

• Efficient production

• Economic growth

• Inefficient production

• Unattainable production

What does it mean when production is unattainable?

• Resources increased due to population boom

• Inability to produce at that level because lack of resources

• Inefficient use of resources

• Resources are stagnant

Point F on the graph represents?

• Inefficient production with the given resources

• Efficient production with the given resources

• Unattainable resources with the given production

• Stagnant production with the given resources

What can be said about the production level at point B?

• Production is efficient given the resources available

• Production is limited to resources available

• Production is inefficient given the resources available

• Production unattainable given the resources available