Econ Test Review

Which of the following is true about scarcity?

• Scarcity affects all societies.

• Scarcity exists only in poor countries.

• Scarce goods lead to lower prices.

• Scarcity of resources can be eliminated using sound economic policies.

To save money, Taylor decided not to go to a concert where her favorite musician was performing. What was the opportunity cost of that decision?

• having fun at the concert

• spending time at home

• having time to study

• having extra money

The study of how firms, nations, and individuals best allocate their limited resources is called

• Circular Economic Activity

• Economics

• Factoring Production

• Supply and Demand

Computers, trucks, hammers, and other man made materials would be which factor of production?

• Capital

• Entrepreneurship

• Labor

• Land

Logan starts a restaurant using his own money to purchase a building and cooking supplies such as ovens and grills. This is an example of which of the following economic terms?

• Entrepreneurship

• Productivity

• Specialization

• Investment

What term do we use to describe items that are necessary for our survival?

• Scarcity

• Shortage

• Need

• Want

Economics is

• the amount of a good or service that is available for consumers to buy

•  the amount of a good or service that consumers are willing to buy

• Study of how we make decisions in a world where resources are limited

• the economic problems of limited goods and the unlimited wants of society in general

Scarcity is

• the amount of a good or service that is available for consumers to buy

• the amount of a good or service that consumers are willing to buy

• Study of how we make decisions in a world where resources are limited

•  the economic problems of limited goods and the unlimited wants of society in general

Supply is

• the amount of a good or service that is available for consumers to buy

• the amount of a good or service that consumers are willing to buy

• Study of how we make decisions in a world where resources are limited

• the economic problems of limited goods and the unlimited wants of society in general

Demand is

• the amount of a good or service that is available for consumers to buy

• the amount of a good or service that consumers are willing to buy

• Study of how we make decisions in a world where resources are limited

• the economic problems of limited goods and the unlimited wants of society in general