Intro to Basic Economics

Factors of production are also known as

• resources

• consumer goods

• consumer services

• factors of demand

Physical capital consists of

• manufactured goods, like pizza.

• human energy

• human development

• manufactured resources

Human capital consists of

• entrepreneurship

• labor

• the value of the workforce

• the amount of currency held by people.

Roads, ports, internet networks, airports are examples of

• human capital

• infrastructure

• land

• labor

The basic problem in economics is

• allocating scarce resources with infinite wants

• deciding between wants and needs

• how much money you have

• how to allocate your time.

You can choose the beach or the park. You choose the beach. What is your trade-off?

• the beach

• the park

• the beach and the park

• either the beach or the park

The value of your highest foregone alternative is called

(a)  

A fish in Lake Michigan is an example of

• land

• labor

• capital

• entrepreneurship

To build human capital

• invest in diamonds

• invest in education and health care

• Invest in property

• invest in collectables

What are the three economic questions?

• What should be produced? Who should benefit? Why should it be produced?

• What should be produced? Who should be produced? Who gets the product?

• What should be produced? How should it be produced? Who gets the product?

• What should be produced? How should it be produced? Why should it be produced?