Economics Unit 1 Review

Economics is the study of how people choose to use scarce resources to satisfy their wants.

• True

• False

Which is not considered a need?

• Food

• Clothing

• Car

• Shelter

Which of the following best describes wants?

• limited and ever changing

• unlimited and ever changing

• limited and never changes

• unlimited and never changes

A person who makes goods or provides services is called a

• Consumer

• Customer

• Provider

• Producer

The United States decides what goods to produce by letting

• Only the government decide

• the producers and government decide

• only the producers decide

• the producers and consumers decide

Into what categories do economists divide factors of production?

• land, labor, capital, and entrepreneurship

• land, labor, money, and entrepreneurship

• resources, labor, capital, and entrepreneurship

• resources, labor, money, and entrepreneurship

An example of a trade-off is

• giving up going to a movie to spend time shopping

• giving up going to a movie because it got bad reviews

• going to a movie to see your favorite movie star

• going to a movie because it got good reviews

The satisfaction received from using one more unit of a good or service is called

• opportunity cost

• opportunity benefit

• marginal cost

• marginal benefit

What does a point inside the curve of a Production Possibility Curve indicate?

• all resources are being fully employed

• not all resources are being fully employed

• more resources are required

• less resources are required

Harvesting less corn than the land is capable of producing is an example of

• marginal costs

• opportunity costs

• efficiency

• underutilization