Unit 1: The Economic Way of Thinking

The satisfaction gained from using one more unit of a good or service is called

• marginal benefit

• marginal cost

• opportunity cost

• opportunity benefit

Which of the following is NOT one of the four factors of production?

• land

• labor

• capital

• resources

Which of the following is NOT one of the four factors of production?

• Labor

• land

• money

• entrepreneurship

Which of the following is NOT one of the four factors of production?

• Entrepreneurship

• Surplus

• Capital

• Labor

A need is fulfilled by

• jewelry

• food

• movie tickets

• video games

A situation that exists when there are not enough resources to meet human wants is called

• need

• deficit

• scarcity

• surplus

The human time, effort, and talent that go into the making of products is called

• labor

• scarcity

• capital

• resources

The value of what you give up by choosing one alternative over another is called

• opportunity benefit

• opportunity cost

• marginal cost

• marginal benefit

Which of the following examines the costs and expected benefits of a choice?

• cost-benefit analysis

• choice-benefit analysis

• choice-profit analysis

• cost-pro analysis

Making decisions based on what you believe is the best combination of costs and benefits is called

• consumer

• economics

• economizing

• efficiency