Economics Chapter 1 Review

If the Pennsylvania state government makes a decision according to the best combination of costs and benefits, they are ___________.

• economizing

• incentivizing

• estimating their utility

• setting up a cost-benefit analysis

Shilo is planning a family vacation to the beach. While planning the trip, Shilo is trying to decide if they should go for a long weekend or spend a few extra days and stay for the week. Each additional day they stay will cost money but they will also gain the benefit of being on vacation longer. Which economic concept/tool applies best to this scenario?

• incentive

• utility

• production possibilities curve

• cost-benefit analysis

Which of the following is a tool used by economists to show the impact of scarcity on an economy?

• production possibilities curve

• cost-benefit analysis

• opportunity cost

• factors of production

The study of how individuals and societies satisfy their unlimited wants with limited resources is known as ____.

• economics

• choice

• factors of production

• economize

In economics, the maker of a good or service is known as the ________.

• consumer

• producer

• capital

• statistics

A receptionist at a doctor's office.

A carpet installer for a flooring company.

A cyber security expert at a bank.

A police officer.

A garbage collector.

• labor

• capital

• factors of production

• marginal cost

A person who buys a good or a service is known as _____.

• consumer

• producer

• entrepreneur

• factors of production

Zeb got a raise at work. He is trying to decide if he should invest the extra money or put it towards paying down credit card debt.

The extra money Zeb received is known as _____ in economic terms.

• marginal cost

• marginal benefit

• incentive

• utility

The resources used to produce goods and services are known as ______.

• factors of production

• capital

• producer

• land

What is being analyzed in this graph?

• production possibilities curve

• cost-benefit analysis

• statistics

• marginal benefits