Quiz 1.1 Spring 2020

Which of the following is NOT a basic economic question?

• WHAT to produce
• WHEN to produce
• FOR WHOM to produce
• HOW to produce

Read the statement below. “There is no free lunch.” In economic terms, what does this mean?

• Someone must pay for everything.
• All production is designed to reduce scarcity.
• Choices are never based on self-interest.
• People only think of others when making choices.

Use the following “equation” to answer the question below. Unlimited Wants + Limited Resources = ????? Which of the following best completes the above “equation”?

• Scarcity
• Competition
• Savings
• Equilibrium

What is the most basic economic issue for all societies?

• Scarcity
• Taxation
• Inflation
• Recession

Which of the following is the best measure of a nation’s standard of living over time?

• Rate of savings
• Rate of unemployment
• Rate of inflation
• Real GDP per capita

A company decides to install more machines and lay off workers. Which economic question is addressed directly?

• How to produce
• What to produce
• For whom to produce
• Where to produce

Which of the following is NOT a capital good?

• a bulldozer at a construction site
• a cash register at a clothing store
• an oven at a bakery
• a television set for sale at an appliance store

Which of the following lists the four factors of production?

• land, labor, wants, entrepreneurs
• land, labor, capital, scarcity
• labor, needs, capital, entrepreneurs
• land, labor, capital, entrepreneurs

In economic terms, what are land, labor, capital and entrepreneurship?

• Production possibility
• Factors of production
• Production trade-offs
• Opportunity costs

The study of economics includes all of the following EXCEPT

• description.
• prediction.
• production.
• analysis.