Economics Chapter 1 Test Review

What is an example of capital?

• machine used to produce cars

• Tallahassee, Florida

• manager of a restaurant

Creator of a new cell phone

• manager of a cell phone store

• entrepreneur

• a sales representative in a electronics store

What is an opportunity cost?

• the next best choice or option

• the cost of making a product

• the cost saved buying a cheaper product

If Jane gets a job at Burger King, which pays her an hourly wage for her labor. Jane is participating in

• the product market

• factor market

• entrepreneurship

A society producing along the production possibilities curve is ______ in using its resources.

• inefficient

• efficient

• impossible

What does a production possibilities curve show?

• combinations of goods and services an economy can produce

• trends in production

• which products are profitable

When people are waiting in long lines to buy a new product, this is known as

• a shortage

• scarcity

• consumerism

What is the study of economics?

• explaining how people deal with scarcity

• studying how things are made, bought, sold and used

• explaining how incomes are earned and how jobs are created

• all of these are correct

What is an example of labor?

• manager of a grocery store

• teacher in 5th grade

• trees,

• books

What is an example of land?

• trees

• a gold watch

• gold and silver

• a person making gold bracelets