Unit 1 Economics (Ch 1-3)

Kate has saved $180. The total cost of the items she wants to purchase comes to $200. What basic economic fact does this situation illustrate? 

• Scarcity
• Shortage
• market failure
• inefficiency

You go to a restaurant and order a veggie sandwich on wheat bread. The water that a farmer used to irrigate the wheat and vegetables is best categorized as which factor of production? 

• physical capitol
• land
• labor
• human capital

A production possibilities curve can be used to illustrate 

• economic growth over time
• decision making in a centrally planned economy
• how public goods are created
• oppurtunity cost in a nation's economy

The saying, “There is no such thing as a free lunch,” best illustrates which economic concept? 

• underutilization
• trade offs
• factors of production
• thinking at the margin

Economics is the science of:  

• abundance
• scarcity
• test tubes
• choices

Human, natural, and capital resources(building blocks) that can be used to produce products are called:  

• Land 
• Labor
• Capital 
• Factors of Production

Nature's free items are called:  

• natural resources
• human resources
• capitol resources
• labor

Brain or muscle-power of human beings is called:  

• natural resources
• human resources
• capital resources
• land

Machines, buildings, and tools ("man-made inputs") used in the production process are called:

• natural resources

• human resources

• capital resources

• land

Goods or services that are necessary for survival  are called:  

• needs
• wants
• products
• trade-off