Biztown

Bobby's mother gives him an allowance of $10.00 a week if he does chores. Last weekend, he had to choose between mowing his lawn or playing a video game. He chose to play the video game. What is his opportunity cost?

• Making his parents mad for not mowing the lawn

• Earning money for doing labor

• Choosing between the two opportunities

• Doing what he wanted to do more

What is the basic economic problem that all societies must deal with?

• Profit

• Abundance

• Taxes

• Scarcity

Why are diamonds more valuable than coal?

• They are less scarce

• They are in higher demand

• They are easy to find

• They are more scarce

Which three of the following are economic questions a society must answer to solve scarcity?

• "What products should be made?"

• "Who gets to own the products"?

• "How should the products be made?"

• "Who should run the government?"

Which are the factors of production used as inputs when making products?

• Land (Natural Resources)

• Tools (Capital Resources)

• Entrepreneurs

• Labor (Human Resources)

Which two of the following are examples of Natural Resources?

• Gold

• A sledgehammer

• Oil

• A teacher

Which two of the following are examples of Human Resources?

• A factory worker

• A store owner

• A business CEO

• A teacher

Which two of the following are examples of Capital Resources?

• A sledgehammer

• Gold

• A one hundred dollar bank loan

• A store owner

Which two of the following are examples of entrepreneurs?

• A business CEO

• A factory worker

• A store owner

• A teacher

What is the main feature of traditional economies?

• Focus on agricultural production

• Government controls all economy

• Freedom of economic choice

• High taxes and low wages