Economics - Chapter 1.1

Which factor of production is the following: Wood

• Land

• Labor

• Capital

• Entrepreneurship

Which factor of production is the following: A Tractor

• Land

• Labor

• Capital

• Entrepreneurship

Which form of capital is a self-checkout machine

• Human

• Physical

• Financial

• institutional

Which form of capital is a Master's Degree

• Human

• Physical

• Financial

• Institutional

What is the fundamental difference between a shortage and scarcity?

• A shortage is caused by producers of goods or services and scarcity is natural

• A shortage is natural and scarcity is financial

• They are synonyms

• Scarcity is caused by producers and a shortage is a lack of demand

The main issue of economics is

• Scarcity

• Inflation

• Revenue

• Costs

Work experience would be considered

• Human capital

• Physical capital

Which of the following would cause a shift to the right on a Production Possibilities curve?

• A Wildfire in an urban area

• a widespread plague

• The closing of an industry

• The creation of a faster computer processor

Economics is about making choices.

• True
• False

Markets are the means by which buyers & sellers carry out exchange.

• True
• False