unit 1B Econ

1. Which of the following is the best definition of Scarcity?

• 1. When the supply of a resource exceeds the demand.

• 1. When lots of people want a resource that is in low supply.

• 1. When demand for a resource exceeds supply.

• 1. When a resource is really rare

Customs and cultural norms best describe the ways which economic system deals with the problem of scarcity?

• Market

  
  

• Mixed

  
  

• Traditional

  
  

• Command

  
  

1. A barista at Starbucks is an example of which factor of production?

• Land

• Labor

• Capital

• Entrepreneur

1. What are factors of production?

• Externalities

  
  

• Resources required as input to produce goods and services

  
  

•   Prices based on supply and demand

  
  

• The ratio of how much consumers owe to measures of personal income

  
  

1. What characteristics must an item possess for it to have monetary value?

•   Capital and transferability

  
  

• Scarcity and capital

• Scarcity and utility

• Transferability and utility

The movement demonstrated by this graph would most likely be caused by which of the following?

• The loss of resources in society

  
  

• Moving the factors of production from the production of one good to another

  
  

• The conquering of new lands that greatly expands society's resources.

  
  

• 
  all of the above

1. Which of the following would result in an inward (leftword) shift in the production possibilities curve in the mythical country Alpha?

• An influx of immigrants and workers from other countries

  
  

• The discovery of an abundant natural resource

•     Deregulation of federal land and the logging industry

• A long and severe drought

Which of the following best describes the purpose of the production possibilities curve?

• It identifies all possible combinations of two specific goods and services an economy can produce

  
  

•   It identifies trends in production

  
  

•   It predicts future economic production for a nation, group of nations, or world as a whole

  
  

•   It shows which products are most profitable

1. What is the opportunity cost of moving from point E to Point A?

• 40 Wheat

• 30 apples

• 70 apples

• 10 wheat

1. What is opportunity cost?

•    The cost of labor when production is expanded or changed

  
  

• The cost of not expanding production

  
  

• The dollar amount attached to a good or service

  
  

• The measurement of what you’ve given up in order to make a given choice