Econ Unit 1 Quiz

Government aid given to the poor best describes which of the following:

• Scarcity

• A Positive Externality

• Welfare

• Physical Capital

Give one example of Welfare.

What is the purpose of Temporary Assistance to Needy Families?

• Help families in need get a car.

• Providing money to people who can't work

• Provide low-income housing to the poor

• Help those in need prepare to join the workforce and become independent

Give one example of a Positive externality.

Give one example of a negative externality.

A basic condition that exists when unlimited wants exceed limited productive resources, best describes which of the following?

• Services

• Scarcity

• Needs

• Capital

What is physical Capital?

• The people involved in the production of goods and services.

• The resources from nature used to produce goods and services.

• Tools, machines, and structures used over and over again in the production of goods and services.

What term means the second best alternative that must be given up to get something

• Goods

• Scarcity

• Services

• Opportunity Cost

• Trade-Offs

A(n) ______  is someone who takes a risk to start a business (usually small business).
Ex. Bill Gates who started Microsoft.

• Loan Officer
• Investor
• Entrepreneur
• Laborer

Which of the following is NOT a basic economic question?

•  FOR WHOM to produce 
• WHEN to produce
• WHAT to produce
• HOW to produce