Fundamentals Test

The fundamental problem of Economics: Unlimited wants, limited resources.

• Opportunity Cost

• Trade Offs

• Scarcity

• Marginal Benefit

ALL alternatives given up when making a decision.

• Scarcity

• Opportunity Cost

• Trade Offs

• Rational Decision Making

The SECOND best alternative given up when making a decision.

• Opportunity Cost

• Trade Offs

• Scarcity

• Rational Decision Making

The factors of production (land, labor, capital, and entrepreneurship) are also known as this:

• Trade Offs

• Environmental Resources

• Natural Resources

• Productive Resources

Receiving the training necessary to perform a job is building what?

• Entrepreneurship

• Physical Capital

• Human Capital

• Labor

The Coca Cola factory is considered what factor of production?

• Land

• Labor

• Physical Capital

• Human Capital

A new breakthrough in computer technology allows food to be grown faster and more abundantly. This would cause PPC to shift to the________.

• Right

• Left

• No Shift

In order for a company to increase their efficiency, productivity, and overall profits, they should seek to:

• Never update their technology

• Let their employees train themselves

• Invest in new technology, but not train employees

• Invest in new technology and education for their workers

If the production possibilities curve moves outward to the right, what would be the cause of the shift?

• old, broken down equipment

• improved technology

• higher raw material costs

• shortage of resources

Which of the following statements describes the concept of scarcity?

• producing one good and neglecting another

• when societies distribute goods unevenly

• societies cannot produce enough goods for themselves

• limited resources cannot satisfy unlimited wants