2/15 Economics Quiz 1

Who is affected by the condition of scarcity?

• The rich

• Large economies

• All societies

• Producers (ie: businesses)

Why do all societies have to make decisions about how resources will be used?

• People are greedy

• There are not enough resources for those who want them

• Resources are too expensive for most people

• Because there is a huge gap between the rich and poor

Why do we have to make production choices about available resources?

• Too many resources for the demand

• Limited wants

• Unlimited resources

• Scarcity

What is scarce in the following scenario: You have to go to work but if you work a lot of hours you are going to be very tired

• Work
• Money
• Sleep
• Time

What is the best example of scarcity

• The restuarant is not crowded tonight 
• The school parking lot only has 150 spaces but 200 students want to park there
• There are 500 houses in the subdivision and 250 of them are occupied
• A person decided to dye her hair blonde instead of red

What factor of production does this picture represent?

• Land
• Capital
• Labor
• Entrenprenour

The factor of production that includes the physical land and resources that come directly from the earth.

• Land
• Labor
• Capital
• Entrepreneurship 

A student must decide between going to the movies with friends or staying home and studying for a final exam. She chooses to stay home and study. Which economic concept describes going to the movies in this scenario?

• Comparative Advantage

• Equilibrium Point

• Income Effect

• Opportunity Cost

Which of the following is true?

• Needs, wants, and resources are all unlimited

• Needs and wants are unlimited but resources are limited

• Needs and wants are limited but resources are unlimited

• Needs, wants, and resources are all limited

Man-made resources used in the production process i.e. machines in a factory.

• Labor 
• Capital
• Household
• Revenue