Econ Ch. 1

A popular model used to illustrate the concept of opportunity cost isA popular model used to illustrate the concept of opportunity cost is

• the production possibilities curve.

• entrepreneurship.

• the paradox of value.

• the factors of production.

Manufactured goods needed to produce other goods and services are called

• nondurable goods.

• capital goods.

• Gross Domestic Product (GDP).

• consumer goods.

The dollar value of all final goods, services, and structures produced within a country’s borders in a single year is

• its standard of living.

• financial capital.

• a cost-benefit analysis.

• Gross Domestic Product (GDP).

The study of economics is important because it enables us to

• describe our standard of living.

• increase our consumption of consumer goods.

• become better decision makers.

• determine what goods ought to be produced.

Division of labor is a characteristic of

• home craft businesses.

• assembly line production.

• classroom education.

• entrepreneurship.

Economics is the study of

• numbers

• people’s choices

• how people try to satisfy their unlimited wants through careful use of reletively scarce resources.

• the mind

Which is NOT a factor of production?

• land

• capital

• labor

• wages

What do we call people who use goods and services?

• consumers

• labor

• people

• consumption

Wages are earned in exchange for labor in the

• product market

• factor market

• businesses

• individuals

People buy goods and services in the

• product market

• factor market

• businesses

• individuals