Econ Quiz 1 Foundations

Economics is all about

• money

• banking

• decision making

• the stock market

There is no such thing as Free Lunch.

• True

• False

In the USA who determines what goods and services are produced/offered?

• Government

• Producers

• Consumers

• Producers and Consumers

The resources used in the production of goods and services are limited, therefor, society must

• Try to obtain additional resources

• Reduce their use of resources

• Make choices about how to use resources

• Produce more products and less services

What are the factors of production?

• Land and Labor

• Land, labor, capital & entrepreneurship

• Money and Labor

• Money and Government and Labor

What is the fundamental problem of every society?

• labor costs
• scarcity
• economic interdependence
• market fluctuation

True or False: Everything that is scarce requires a choice, and these choices always involve a tradeoff.

• True
• False

What is the production possibilities curve?

• a graph that shows how much an economy can produce between 2 goods
• how much money something is
• the opportunity one has to give up in order to gain something else
• land, labor, capital, entrepreneurs

What is opportunity cost?

• a graph that shows how much an economy can produce between 2 goods
• how much money something is
• the opportunity one has to give up in order to gain something else
• land, labor, capital, entrepreneurs

The opportunity cost of increasing production from 7 to 9 trucks is

• Scarcity
• 2 boats
• 2 trucks
• 3 boats