Econ Standard 1 Test

An opportunity cost is...

• What you give up for something else

• The added cost of making more

• Using resources in the best way

• Risks taken to start a business

Scarcity is best defined as...

• Maximizing profit and minimizing waste

• The idea that goods and services are limited

• Ability to sell in a command economy

• Limiting the use of resources

Labor, one of the factors of production, is best defined as...

• Efforts that earn wages

• A cost associated with production

• The day you get off in September

• Profit gained by an employer

Land, one of the factors of production, is best defined as...

• Any products owned by a producer

• Solely the property on which profit is made

• Natural resources

• Something important for survival

What are the three factors of production?

• Land, Labor, and Capital

• What, How, and For Whom

• Freedom, Security, and Growth

• Life, Land, and Clientele,

A person is considered to be an entrepreneur if...

• They are a boss

• Take a risk and use factors of production to open a business

• Have made money

• Contributes to the business cycle

An empty bread aisle indicates...

• There is a shortage of bread

• Bread is a scarcity

• There is a surplus of bread

• The price of bread has gone down

In the picture, what is the physical capital?

• The Crops

• The Land

• The Driver

• The Tractor

Economics is the study of....

• Social studies

• How to invest and increase profits

• How people decide what economy to live in

• How people make choices when supplies are limited

What is the difference between a shortage and a scarcity?

• A shortage can be temporary or

  long-term, but scarcity always exists.

• A shortage results from rising prices;

  scarcity results from falling prices.

• A shortage is a lack of all goods and

  services; scarcity concerns a single item.

• There is no real difference between a

  shortage and a scarcity.