Intro to Economics Chapter 1

The relationship between people's unlimited wants and needs and the limited resources available in order to fulfill them is often termed--

• opportunity cost

• scarcity

• production possibilities curve

• taxes

The next best alternative when making an economic choice is known as

• opportunity cost

• scarcity

• production possibilities frontier

• taxes

It is often beneficial to people to participate in choices that have a __ opportunity cost.

• high

• low

• constant

• none of the above

In an economic system, who buys and uses the goods and services?

• producer

• distributor

• entrepreneur

• consumer

In an economic system, who makes the goods and services?

• producer

• distributor

• entrepreneur

• consumer

Which of the following is NOT a basic economic question producers and systems have to ask and answer?

• WHAT will be produced?

• HOW will it be produced?

• How MUCH to sell it for?

• FOR WHOM are we producing?

Which of the following is NOT a factor of production?

• entrepreneur

• land

• labor

• taxes

Which factor of production is best represented by the oil used to make gasoline?

• land

• labor

• capital

• entrepreneur

Which factor of production is best represented by the robots used to make cars?

• land

• labor

• capital

• entrepreneur

Which factor of production is best represented by Steve Jobs of Apple?

• land

• labor

• capital

• entrepreneur