Econ Unit 1 review

 The term that can be defined as the loss of the next best use of resources is:

• Scarcity

• Opportunity cost

• Cost Efficient Production

• Capital

Why do people have to make choices?

• People have limited wants and needs

• Opportunity cost must always be paid

• People have unlimited wants and scarce resources

• All governments ration who receives scarce resources

Economics, as a field of study, is BEST described as

• How society deals with the problem of scarcity

• How people deal with investment alternatives

• How everyone spends their money

• How government controls the money supply

Which of the following is a problem faced by ALL economic systems?

• Federal debt

• Poverty

• Inflation

• Scarcity

The term underutilization can be defined as

• The act of buyers and sellers coming together willingly in the marketplace

• The right to produce goods and services

• The use of fewer resources than the economy is capable of using

• What you give up or what you did not choose

The method used by a society to produce and distribute goods and services is its

• Production system

• Political system

• Industrial system

• Economic system

A good that is used to help increase future production can be defined as:

• Natural good

• Consumer good

• Capital good

• Artificial good

Another name for a free enterprise system is:

• Market economy

• Industrial economy

• Command economy

• Democratic economy

A washing machine used in the laundry business is classified as:

• Chaotic Good

• A consumer good

• A capital good

• Artificial Good

A “let the people do as they please, or hands off” approach to the economy by the government is called:

• Surplus value

• Laissez faire

• Central planning

• Totalitarianism