Intro to ECON

What is economics?

• The study of money
• The study of how people choose to use limited resources
• The study of governments and citizens
• The study of the past

What is the difference between a renewable resource and a nonrenewable resource?

• A renewable resource replenishes over time, while a nonrenewable resource does not
• A nonrenewable resource replenishes over time, while a renewable resource does not
• A renewable resource is natural, while a nonrenewable resource is not
• A nonrenewable resource is natural, while a renewable resource is not

Which of the following is NOT one of the three questions of economics?

• What to produce?
• How to produce?
• For whom to produce?
• When to produce?

What is scarcity?

• The study of how people choose to use limited resources
• The problem of unlimited wants and limited resources
• The problem of limited wants and unlimited resources
• The problem of having too few options

"Gold" is an example of which factor of production?

• Land
• Labor
• Capital
• Entrepreneurship

What is the value of the next-best alternative when you make a trade-off?

• Fruit snacks
• Opportunity Cost
• Scarcity
• Second-Best

"Coal" is an example of...

• A nonrenewable resource
• A renewable resource
• Capital
• Labor

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

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

• Scarcity
• 2 boats
• 2 trucks
• 3 boats

Labor, human capital, entrepreneurship, natural resources, and capital are all examples of which of the following?

• Outputs
• Substitutes in Production
• Absolute Advantage
• Factors of Production