The Economic Way of Thinking--Chapter 1

Which is not considered a quiz?

• food

• clothing

• shelter

• television

Which of the following best describes wants?

• limited and ever changing

• unlimited and ever changing

• limited and never changes

• unlimited and never changes

A person who makes goods or provides services is called a

• consumer

• customer

• provider

• producer

A supermarket running out of bananas is an example of

• scarcity

• a shortage

• utilization

• an opportunity cost

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

A country that does not posses oil is unlikely to produce

• gasoline

• rice

• corn

• furniture

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

• machine-intensive farming methods

• labor-intensive farming methods

• machine and labor-intensive farming methods

• few intensive farming methods

Into what four categories do economists divide factors of production?

• land, labor, capital, and entrepreneurship

• land, labor, money, and entrepreneurship

• resources, labor, capital, and entrepreneurship

• resources, labor, money, and entrpreneurship

To be a successful entrepreneur requires a willingness to

• play it safe

• borrow money

• take risks

• limit risks

Which term means "making decisions based on what you believe is the best combination of costs and benefits?"

• economizing

• budgeting

• cutting back

• motivating