Economics Distance Learning 1

What is macroeconomics?

• things that people need to survive

• the study of how individuals or small businesses make economic decisions

• the study of how large groups such as governments or entire societies make economic decisions

• things that people desire but do not need to survive

What is microeconomics?

• the study of how individuals or small businesses make economic decisions

• when certain goods are not available because of natural disasters

• the study of how large groups such as governments or entire societies make economic decisions

• human-made goods used to make other goods or perform other services (such as computers or railroads)

What is definitely NOT an example of a need?

• food

• water

• airplanes

• shelter

Which of the following would not be considered a want?

• basketball tickets

• a new computer

• drinking water

• a television

Which of the following best describes the difference between shortages and scarcity?

• shortages are temporary and scarcity is not

• scarcity is temporary and scarcity is not

• scarcity is caused by natural disasters

• shortages are wants and scarcity is needs

Which of the following is NOT a factor of production?

• land

• labor

• shortages

• capital

• entrepreneurship

"any natural resource not created by people" such as water, plants, etc. describes which factor of production?

• land

• labor

• capital

• entrepreneurship

Which factor of production is described by the following description: "the human-made goods used to make other goods and perform other services" examples include computers or railroads

• land

• labor

• capital

• entrepreneurship

Which factor of production is described by the following description: "the work that people do to produce goods and services" examples include painting or babysitting

• land

• labor

• capital

• entrepreneurship

Which factor of production describes the ability to bring all the other factors of production together to form a profitable business?

• land

• labor

• capital

• entrepreneurship