Eco: Chapter 1 Review

When manufactured goods are used to produce other goods and services, they are called _________.

• consumer goods

• capital goods

• factors of production

• scarce

An example of a nondurable good is

• pizza

• computer

• car

• cell phone

The paradox of value occurs when some necessities have little value, while some non-necessities have a much higher value.

• True

• False

Manufactured goods needed to satisfy your own wants and needs and that provide satisfaction are called ___________.

• consumer goods

• capital goods

• Gross Domestic Product (GDP)

• a cost benefit analysis

The dollar value of all final goods and services and the most comprehensive measure of a country's total production output is

• its standard of living

• financial capital

• a cost-benefit analysis

• Gross Domestic Product (GDP)

A popular model used to illustrate the concept of opportunity cost is

• the production possibilities curve

• entreprenurship

• the paradox of value

• the factors of production

Tangible goods consumed to satisfy our wants and needs are called _____________.

• non durable goods

• capital goods

• GDP

• consumer goods

Water, Oil, and land are examples of

• capital resources

• labor resources

• natural resources

• human resources

Why does scarcity exist?

• people are greedy

• there is not enough resources to produce everyone’s wants

• there are too many resources available

• people have more wants than needs

Which of the factors of production involves taking risks and combining resources to produce a good or service?

• land

• labor

• capital

• entrepreneurs