Unit 1- Economic Reasoning

Economics is the study of:

• Trade-offs

• Opportunity cost

• Scarcity

• Money

Which of the following is considered a need by economic standards?

• Education

• Poptarts

• A cell phone

• Basic foods

According to economic definitions what word describes something that is desirable but not necessary for survival?

• Needs

• Wants

• Haves

• Nots

Which of the following is the best example of a trade-off?

• Going to a mandatory meeting

• Doing your homework with no troubles

• Having only one pair of shoes

• Choosing to go to Taco Bell rather than Salsarita's

Which of the following the best definition of opportunity cost?

• The value of the next best alternative

• The price of success

• The creation of a trade-off

• The rewards given when creating a product

Trees and timber would fall under factor of production?

• Labor

• Land

• Entrepreneurship

• Capital

A cash register would be categorized under which factor of production?

• Labor

• Land

• Capital

• Entrepreneurship

Who organizes the factors of production in order to create a business?

• Laborers

• Entrepreneurs

• Peasants

• Architects

A person building a bridge in exchange for wages falls under which factor of production?

• Labor

• Land

• Capital

• Entrepreneurship

When determining the mandatory education levels (high school in the United States), which economic question is being answered?

• How to produce?

• What to produce?

• No answer text provided.

• For whom to produce?