Quiz #2: Economic Terms

A resource used to provide goods services.

• Capital Resource

• Capital Good

• Factors of Production

• Opportunity Cost

An item that is used in the production of other goods and services.

• Scarcity

• Capital Good

• Jolly Good

• Economics

The fundamental condition of economics that results from the combination of limited resources and unlimited wants.

• Socialism

• Communism

• Scarcity

• Efficiency

The value lost by choosing to use one resource over another.

• Factors of Production

• Opportunity Cost

• Populism

• Wants & Needs

Opportunity Cost is best defined as

• The price you pay to purchase something

• The benefit you gain by making a decision

• What you must give up when making a decision

• The amount of debt you take on by making a decision

Which of the following would be an example of human capital?

• The number of capitalists in Beaverton, Oregon

• The skills of the shoe designers at the Nike facory in Beaverton, Oregon

• The total population of Beaverton, Oregon

• The land that the Nike headquarters is located on in Beaverton, Oregon

Soil, minerals, air, water, and coal are all examples of

• Fossil fuels

• Non-renewable resources

• Natural Resources

• Natural Selection

Economics is the study of which basic problem?

• How to keep consumers out of debt?

• How to figure out the way to make the most money?

• How to fulfill our unlimited wants and needs with limited resources?

• How do we ensure all people get a college education?

Which of the following is NOT one of the three basic questions of economics when looking at economic systems?

• What goods should be produced ?

• What is the price of the goods?

• How should the goods be produced?

• Who gets to consume the goods?

Johnny has $50 and wants to buy a pair of Shoes that cost $95. He has to settle for a pair of Crocs for $45. In economic terms Johnny is facing the problem of:

• Scarcity

• Marginal costs

• Shortage

• Unemployment

• Bad Taste