Introduction to Economics

Economics is the study of how people make choices about ways to use _______________ resources to fulfill their unlimited wants and needs.

• Limited

• Natural

• unlimited

• man-made

What are the four factors of production?

• Land, Technology, Dirt, Resources

• Land, Labor, Capital, Entrepreneurship

• Resources used in the production of only services

• Land, Labor, Entrepreneurship

The factor of production that includes natural resources is known as:

• land

• capital

• labor

• Entrepreneurship

The central problem in economics is:

• Government

• Business

• Opportunity Cost

• Scarcity

A teacher gives extra credit if a student completes a test study guide... This is an example of ?

• Voluntary Exchange

• Freedom of Choice

• Positive Incentives

• Negative Incentives

The limited availability of resources is known as...

• Scarcity

• Profit

• Voluntary Exchange

• Opportunity Cost

Point A inside this Production Possibilities Curve represents:

• Resources are being inefficiently used

• Production is not attainable

• Production is possible if there is an increase in resources

• Production possibilities are going to decrease

What does a Production Possibilities Curve illustrate?

• Choices result in voluntary exchange

• Choices result in trade-offs because of scarce resources

• Production is impossible

• Production of multiple goods creates inefficiency

A student must decide between going to the movies with friends or staying home and studying for a final exam. She chooses to stay home and study. Which economic concept describes going to the movies in this scenario?

• Comparative Advantage

• Equilibrium Point

• Income Effect

• Opportunity Cost

Which of the following is NOT a basic question of economic systems?

• What should be produced?

• For whom should it be produced?

• How long should it be produced?

• How should it be produced?