Economics Chapter 1

Which is an example of scarcity?

• A fan cannot go to a concert because there are not enough tickets.

• A fan goes to a concert because there are enough tickets for everyone.

• A fan cannot go to a concert because he has to do homework instead.

• A fan goes to a concert instead of doing homework. D.A fan goes to a concert instead of doing homework.

Food is an example of

• a durable consumer good.

• a nondurable consumer good.

• a durable capital good.

• a nondurable capital good.

A lawyer does work that could be classified as

• a consumer good.

• a transferable good.

• a service.

• a basic need.

How could the paradox of value explain the price of gold?

• Many people think that gold is not useful.

• Many people think water is more necessary than gold.

• Many people think that food is more necessary than gold.

• Many people think that the price of gold is not related to its usefulness.

What two economic factors determine the value of something?

• Durability and service

• Capital and scarcity

• Scarcity and utility

• Need and want

Which answer would NOT be considered part of a nation's wealth?

• Housing

• Services

• Roadways

• Toys

How might a nation accumulate greater wealth?

• By shifting its economic focus to services rather than products

• By shifting more resources toward production of goods rather than services

• By setting up new standards for learning

• By deemphasizing natural resource production

Which answer explains the phrase "There Is No Such Thing As A Free Lunch"?

• A business that offers a deal will pass on the cost in other ways.

• Businesses rarely offer free items to customers.

• A business always expects its customers to pay for products and services.

• Businesses often ask customers to pay for others' lunches.

Why is analysis an important part of economics?

• Analysis helps economists solve problems.

• Analysis increases a country's GDP.

• Analysis explains the performance of the economy.

• Analysis informs citizens.

Which factor of production is unique because it is the result of production?

• Housing

• Capital

• Goods

• Land