Economic Choices

Which of the following is an exhaustible resource?

• crude oil in the ground

• corn growing in a field

• water in the ocean

• fish in a river

Goods and services have value because they

• are expensive

• use economic resources

• satisfy people’s wants and needs

• are sold for money

The reason scarcity exists is

• people do not make the right choices

• people want more goods and services than can be produced

• some people are rich, some people are poor

• people make choices based on wants and needs

Which of the following is an example of an economic good?

• a nurse taking your temperature

• a receptionist scheduling your next doctor’s appointment

• a doctor taking a patient’s blood pressure

• a prescription for blood pressure medication

What do economic theories do?

• make predictions about economic behavior in the real world

• determine how the economy will behave over the next year

• guarantee methods used to produce goods and services

• determine prices of goods and services

What drives people to make economic decisions?

• concerns about scarcity

• concern for their community

• rational self-interest

• the economic problems of the nation

Which of the following is a normative statement?

• Ralph works an average of 35 hours a week.

• Ralph works too many hours a week to do well in school

• Ralph is paid $ 8.30 an hour for his labor as a cashier.

• Ralph pays 10 percent of his wages in health insurance

Jack can choose to play a round of golf at Arrowhead Golf Course with his friends on Saturday morning or hangout with his girlfriend. Jack chooses to play golf. He will pay $30 to tee off and $50 to rent a golf cart. What is Jack’s opportunity cost?

• $80.00

• a round of golf

• time spent with his girlfriend

• three hours of exercise

The physical and mental effort put into producing goods and services is

• labor

• scarcity

• marginal cost

• opportunity cost

Which of the following is necessary in developing economic theory?

• never assume that people make rational choices based on self-interest

• assume all factors are variables and change constantly

• simplify the problem

• all choices