7th Grade Unit 2 Wk1 Quiz Review

The most fundamental economic problem is

• security

• foreign trade

• scarcity

• health

Economics can be defined as the way people, businesses, governments, and societies

• chose abundance over scarcity

• make choices to cope with scarcity

• attain wealth

• use infinite resources

Economics is the study of

• production, consumption, and distribution of goods and services.

• the distribution of goods and services to those in need.

• ways to reduce wants to eliminate needs.

• the choices we make because of scarcity.

Opportunity Cost means

• the accounting cost minus the marginal benefit

• the monetary costs of an activity

• the highest-valued alternative forgone.

• the accounting cost minus the marginal cost.

During the summer you have made the decision to attend summer school, which precludes you from working at your usual summer job in which you normally earn $6,000 for the summer. Your tuition cost is $3,000, books and supplies cost $300, and room and board cost$1,000. The opportunity cost of attending summer school is

• 3,300

• 4,300

• 10,300

• 6,000

We are forced to make choice because

• not everything is limited.

• shortages are a constant situation.

• we live in a democracy.

• all resources are limited.

The four factors of production are the resources of land, labor, capital, and

• entrepreneurship.

• goods.

• services.

• technology.

A truck used by a plumber is a type of

• consumer good.

• raw good.

• capital good.

• essential good.

Which of the following is an example of a Good?

• an oil change

• a car wash

• a car

• a tuneup

The opportunity cost for using store coupons when food shopping is

• less money.

• food choice.

• less time.

• lower quality.