Unit #1 Quiz: Basics of Economics

TINSTAFL

• There is no such thing as free lunch

• There is no such thing as foreign loans

• There is no such thing as freedom liabilities

• There is no such thing as fiat legislation

The true cost of something you must give up to get something (i.e. the next best thing).

• Opportunity Cost

• Scarcity

• Utility

• Fundamental Questions of Society

Not having enough resources to provide all the things, and meet unlimited needs and wants with limited resources.

• Scarcity

• Opportunity Cost

• Value

• Utility

Which of these is NOT a Fundamental Question in each Society

• What to consume?

• What to produce?

• How to produce?

• For whom to produce?

Vegetation, animals, minerals, air, water, climate

• Land Resources

• Labor Resources

• Capital Resources

• Entrepreneurs

People who apply their efforts, abilities and skills

• Labor Resources

• Land Resources

• Capital Resources

• Entrepreneurs

An item used in production, such as tools, equipment, machinery, factories, etc

• Capital Resources

• Labor Resources

• Land Resources

• Entrepreneurs

Risk takers who combine land, labor and capital to create new products

• Entrepreneurs

• Land Resources

• Labor Resources

• Capital Resources

Items that are economically useful or satisfy a want (tangible)

• Goods

• Services

• Consumers

• Products

Work performed for someone (intangible)

• Services

• Goods

• Consumers

• Products