Econ Chapter 1

A prom dress is an example of a

• Need

• Want

• Physical Capital

• Human Capital

Which of the following is an example of a land resource

• Water

• Coal

• Iron

• All of the Above

Which of the following would an entrepreneur do first when starting a new venture?

• Borrow Money

• Find the necessary land resources

• Identify an unmet want

• Compare prices of competing goods and services

Which of the following is NOT an example of factors of production

• Natural Resources

• Financial Resources

• People who create goods and services

• Acquired knowledge and skills

Which of the following is true about scarcity

• Scarcity affects all societies

• Scarcity exists only in poor countries

• Scarce goods lead to lower prices

• Scarcity of resources can be eliminated using sound economic policies

To save money, Taylor decided not to go to a concert where her favorite musician was performing. What was the opportunity cost of that decision?

• Having fun at the concert

• Spending time at home

• Having time to study

• Having extra money

In the guns vs butter debate, what do ‘guns’ typically represent?

• Social Welfare spending

• Agricultural spending

• Commercial spending

• Defense spending

A person is an Entrepreneur because…

• They spend millions of dollars

• They have many employees who work for them

• Combined Resources to create new products

• Was a woman who succeeded in a male-dominated industry

Suppose you went to a local grocery store. You see a nearly empty shelf of bottled water. Which of the following is the most correct statement?

• There is a shortage of bottled water

• There is a scarcity of bottled water

• Water is not an abundant resource

• Bottled water is a limited resource

Which of the following is an example of a land resource that a person who owns a restaurant would need?

• A servant who waits on customers

• The farmers who grow the vegetables served at the restaurant

• The Water used for drinking and cleaning

• The building where the restaurant is located