AP Econ 2020 Quiz 1

For economists, the word "utility" means:

• versatility and flexibility.

• rationality

• satisfaction

• purposefulness.

Economics may best be defined as the:

• interaction between macro and micro considerations.
• social science concerned with the efficient use of scarce resources to achieve maximum satisfaction of economic wants.
• empirical testing of value judgments through the use of logic.
• use of policy to refute facts and hypotheses.

Macroeconomics approaches the study of economics from the viewpoint of:

• the entire economy.
• governmental units.
• the operation of specific product and resource markets.
• individual firms.

As used in economics, the idea of scarce resources means that:

• mineral deposits are only available in finite amounts.
• resources are not so plentiful that all economic wants can be fulfilled.
• some resources are free while others have price tags on them.
• the quantities available of some resources exceed the demand for them.

A capital resource is:

• Gifts of nature

• A person who risks their own time and money to start a business

• Money that is left over after paying operating costs

• Man made things that help make a good or service

What is an Entrepreneur?

• A person who risks their own time and money to start a business

• The money a business makes from selling their goods and services

• Revenue

• Profit

Land, labor, capital, and entrepreneurship

• Economy
• Infrastructure
• Factors of production
• Capital

Which one of the factors of production is this?

• capital

• entrepreneur

• land

• labor

Which factor of production is this?

• capital

• entrepreneur

• land

• labor

• Human Capital

• Physical Capital

• Land

• Labor