Intro to Econ

What is economics?

• The study of money
• The study of how people choose to use limited resources
• The study of governments and citizens
• The study of the past

Which of the following is NOT one of the three questions of economics?

• What to produce?
• How to produce?
• For whom to produce?
• When to produce?

What is scarcity?

• The study of how people choose to use limited resources
• The problem of unlimited wants and limited resources
• The problem of limited wants and unlimited resources
• The problem of having too few options

"Gold" is an example of which factor of production?

• Land
• Labor
• Capital
• Entrepreneurship

A pickaxe is an example of which factor of production?

• Land
• Labor
• Capital
• Entrepreneurship

A mine worker is an example of which factor of production?

• Land
• Labor
• Capital
• Entrepreneurship

What is the value of the next-best alternative when you make a trade-off?

• Fruit snacks
• Opportunity Cost
• Scarcity
• Second-Best

Labor, human capital, entrepreneurship, natural resources, and capital are all examples of which of the following?

• Outputs
• Substitutes in Production
• Absolute Advantage
• Factors of Production

The Opportunity Cost can best be described as

• How much money your product can be sold for

• The money you must pay to the government to produce goods

• The value lost of the next best alternative choice you could have made

• The money lost by purchasing something instead of making it yourself

Scarcity is the economic law that needs and wants are ________________ but resources are ________________.

• unlimited / limited

• limited / unlimited

• benefits / costs

• costs / benefits