Unit 1 Test Review

Physical articles that have been produced for sale or use. Three examples are food, clothing, and cars.

• Capital

• Services

• Marginal Utility

• Goods

Physical articles that have been produced for sale or use. Three examples are food, clothing, and cars.

• Goods

• Opportunity Cost

• Marginal Utility

• Capital

The value of the next best alternative that is given up when making a choice. This is the measure of what you must give up to get what you most want.

• Services

• Goods

• Opportunity Cost

• Marginal Utility

Work done by someone else for which a consumer is willing to pay. Three examples are teaching, gardening, and childcare.

• Goods

• Services

• Scarcity

• Capital

This is the extra satisfaction or pleasure you will get from an increase of one additional unit of a good or service.

• Marginal Utility

• Opportunity Cost

• Scarcity

• Capital

Which scenario would be an example of the law of diminishing marginal utility?

• A homeless person picking a dollar bill up from the sidewalk

• Eating the last slice of an extra-large pizza with all the toppings

• Drinking your first glass of apple juice after a strenuous workout

• Putting on a warm coat when it's cold outside

What is one modern example of capital replacing labor?

• A student who continued her education

• A worker who takes a minimum-wage job

• A robot in an automobile assembly plant

• An entrepreneur starting a new business

What are the factors of production?

• The measure of the efficiency with which goods and services are produced

• Goods and services

• Scarcity, shortage, and productivity

• Land, labor, and capital

When individual workers become extremely skilled at performing a task.

• Scarcity

• Specialization

• Shortage

• Division of Labor

An economic system in which economic decisions are left up to individual producers and consumers.

• Market Economy

• Command Economy

• Traditional Economy

• Mixed Economy