Ch 1 Economics Test Review

Which 2 basic economic principles create the need for choices?

• scarcity/contentment

• utility/opportunity

• unlimited wants/limited resources

• subject value/utility

When we conserve natural resources, it shows that we understand which economic concept?

• scarcity

• opportunity cost

• utility

• microeconomics

The word economists use to mean "the usefulness of a good or service" is:

• goods

• services

• utility

• stewardship

What does scarcity mean to an economist?

• The watering holes in Africa during the summer are scarce.

• Scarcity means that everything has a limited amount

Micro or Macroeconomics: The nation's unemployment rate

• Microeconomics

• Macroeconomics

What are the Factors of Production?

• land, money, manufacturing, and workers

• labor, capital, supply, and demand

• natural resources, human resources, capital, and entrepreneurship

• entrepreneurship, innovation, natural resources, and money

Which of the following are the best examples of natural resources coming from the land as a factor of production?

• shoes, socks, jeans, and buttons

• televisions, laptops, phones, and chargers

• water, food, computers, and tools

• iron, coal, plants, and minerals

Capital can best be described as

• services that people use every day.

• goods produced to help create other goods and services.

• goods that people eat.

• goods and services that are disposable.

the value of the next-best alternative is known as

• opportunity cost
• sub-alternate decision
• revenue
• margin

when you give up something to have something else

• trade-off
• opportunity cost
• sacrifice of need
• sacrifice of want