AP Micro Unit 1 Review (Vocabulary)

Which of the following words do economists use to refer to the "division of goods, services or resources into shares or portions."

• Elocution

• Allocation

• Greed

• Socialism

Which of the economic systems listed below involves government ownership of the factors of production?

• Command Economy

• Market Economy

• Traditional Economy

• All of the Above

Economists mainly study decision-making in which of the economic systems listed below.

• Command Economy

• Market Economy

• Traditional Economy

Economists use which of the following terms to refer to the gap between the finite resources available to society and the infinite wants/needs of human beings.

• Scarcity

• Shortage

• Surplus

• All of the Above

Economists use the term "factors of production" to refer to...

• Resources used in production

• The important role that multiplication plays in financial affairs

• The goods & services produced in the market

• All of the Above

Economists use the term "Land" to refer to all sorts of natural resources. Which of the following resources fit into this category?

• Land

• Lumber

• Oil

• All of the Above

When discussing the "Factors of Production," economists use the term ______ to refer to the time, effort and energy people put into production

• Entrepreneurship

• Labor

• Physical Capital

• All of the Above

Economists emphasize the importance of "Thinking at the Margin." For instance, when deciding how much to produce, a firm should think about the _______________ costs and benefits of producing a little more.

• Additional

• Total

• Taxes

• Serendipitous

Which of the terms below do economists use to refer to the "value of the next best alternative, given up when one choice is made."

• Opportunity Cost

• Marginal Cost

• Utility

• Marginal Benefit

According to the law of ______________ opportunity costs, once all factors of production are being used to produce a good/service, producing more will cost more than average.

• Increasing

• Decreasing

• Uninteresting

• Logarithmic