Economics Unit 1

Computers used to produce magazine articles are an example of which type of good?

• capital good

• consumer good

Societies are faced with which three basic questions about production of goods?

• what, how and why

• what, where and when

• what, how and for whom

• when, where and for whom

A paper napkin is an example of a _______ because it can only be used once and then is thrown away.

• durable good

• non-durable good

An iPhone is an example of a ______ because it lasts a long time and can be used over and over again.

• durable good

• non-durable good

GDP stands for _____ and is a measure of all goods and services made in a country in ______.

• Gross Domestic Product; 3 years

• Gross Determined Project; 1 year

• Gross Domestic Product; 1 year

• none of the above

The study of economics involves

• explaining how people deal with scarcity.

• studying how things are made, bought, sold, and used.

• explaining how incomes are earned and how jobs are created.

• all of the above.

A lawyer does work that could be classified as

• a consumer good.

• a transferable good.

• a service.

• a basic need.

Economic growth can be achieved

• by acquiring more resources.

• through increasing population.

• with a technological advance.

• all of the above.

What are the four factors of production?

• land

• labor

• capital goods

• entrepreneurs

Inward shifts (left shifts) of the production possibilities curve represents economic growth.

• true

• false