ECON Unit 1 Test

A person who makes goods or provides services is called a

• Consumer

• Customer

• Provider

• Producer

The United States decides what goods to produce by letting

• Only the government decide.

• The producers and government decide.

• Only the producers decide.

• The producers and consumers decide.

To be a successful entrepreneur requires a willingness to

• Play It Safe

• Borrow Money

• Take Risks

• Limit Risks

Being guided by self-interest when making a decision means that you

• Act in a selfish manner.

• Reduce the incentives of others.

• Attempt to maximize utility.

• Ignore the desires of others.

Scarcity arises because all societies have

• Limited resources to satisfy unlimited wants

• Limited needs and unlimited wants

• Unlimited resources to satisfy limited wants

• Unlimited needs and limited wants

A society with a large unskilled labor force will most likely practice

• Few intensive farming methods.

• Machine-intensive farming methods.

• Machine and labor-intensive farming methods.

• Labor-intensive farming methods.

An example of a trade-off is

• Giving up going to a movie because it got bad reviews.

• Going to a movie to see your favorite move star.

• Going to a movie because it got good reviews.

• Giving up going to a movie to spend time shopping.

The addition of new resources often enables a nation to

• Produce more goods but fewer services.

• Produce fewer goods but more services.

• Produce more goods and services.

• Produce less goods and services.

The study of how people use scarce (limited) resources to satisfy their unlimited wants is called

• GDP

• Debt

• GDP per Capita

• Unemployment Rate

The satisfaction received from using one more unit of a good or service is called

• Marginal Benefit

• Opportunity Benefit

• Marginal Cost

• Opportunity Cost