Eco Unit 1

The study of economics involves​

• explaining how people deal with scarcity.

• studying how things are made, bought, sold, and used.

• explaining how incomes are earned and how jobs are created.

• studying how to play basketball.

A family recreational vehicle is an example of a

• durable good.

• nondurable good.

• capital good.

• service.

What two economic factors determine the value of something?

• Durability and service.

• Capital and scarcity.

• Scarcity and utility.

• Need and want.

Paradox of value refers to the

• high value of an essential item and the low value of a nonessential item.

• high value of a nonessential item and the low value of an essential item.

• contradiction of what consumers want and what they need.

• contradiction between gross domestic product and market value.

Food and medication are examples of a

• durable capital good.

• nondurable consumer good.

• durable consumer good.

• nondurable capital good.

Societies are faced with which three basic questions about production of goods?

• what, how, and why

• what, where, and when

• what, how, and for whom

• when, where, and for whom

7. Which of the factors of production includes the manager of the I-phone store

• land

• labor

• capital

• entrepreneurship

Which of the following descriptions best explains the meaning of opportunity cost?​

• the initial cost of starting a new business

• the cost of business failure

• the cost of choosing one alternative over another

• the risk associated with producing a new item

Consumers waiting in long lines for a new product is an example of

• consumerism.

• consumer rights.

• consumer responsibilities.

• scarcity

Which of the factors of production involves taking risks and combining resources to produce a good or service?​

• land

• capital

• labor

• entrepreneurs