Economics: Chapter 1

Which of the following is one of the four factors of production?

• productivity

• goods

• entrepreneurship

• services

As an economic term, land includes __________________.

• work people do

• natural resources

• machinery

• knowledge

All economic choices involve _________________.

• trade-offs

• destruction of resources

• shortages

• tax dollars

What trade-off is involved when you buy a CD?

• exchanging time for money

• exchanging one service for another

• exchanging money for goods

• exchanging goods for services

Which of the following is a visual aid that helps a business determine how best to use its resources?

• opportunity cost

• trade-off

• production possibilities curve

• scarcity

These people take risks in order to reap profits.

• Analysts

• Stock brokers

• Entrepreneurs

• Economists

To an economist, a want is _________________________.

• something you do not have

• something other than a basic survival need

• something you must have to survive

• something most people have

In a trade-off, opportunity cost is the value of the ________________.

• factors of production

• action that was chosen

• scarce resources

• next best alternative

The need to make choices arises because ________________.

• some things are not limited

• everything that exists is limited

• shortages are a constant situation

• people need to share their resources

The basic problem of economics is ________________.

• scarcity

• lack of choice

• shortages

• overabundance