Economics- Unit 1 Summative Review

Society faces limitations on the consumption of goods and services due to

• Scarcity

• Shortages

The alternative forgone after making a decision is known as

• Opportunity Cost

• Trade-Off

• Marginal Benefit

• Incentive

Improving education is an example of investment in

• Physical Capital

• Human Capital

• Labor

• Entrepreneurship

Improvements in technology and economic growth is a result of

• Innovation

• Human Capital

• Entrepreneurship

• Supply and Demand

Producers increase supply to meet demand, raise prices, and make more profit due to

• Scarcity

• Shortages

• Innovation

• Competition

If the cost of a production of a good is lower than the marginal cost, what happens to the businesses profit?

• The profit increases

• The profit decreases

Workers doing different tasks that they are good at in producing a good is known as

• Division of Labor

• Specialization

• Entrepeneurship

• Human Capital

When should a business stop producing a specific good or service?

• When the marginal cost is higher than the marginal benefit

• When the marginal cost is lower than the marginal benefit

• When the total profit is less than the marginal cost

• When the demand for a good increases

Lower production costs and prices can be attributed to

• An increase in demand

• New technologies for better efficiency

• More government regulations

• Less competition in a market

Providing a prize money reward for selling the most cars at a dealership would be which type of incentive?

• Positive Incentive

• Negative Incentive