Econ Quiz 1 Review

Economics can be described as the study of

• Money

• Choices

• graphing

• price ceilings and price floors

The condition of scarcity can be described as one that

• afflicts only poor people and nations

• exists when our unlimited needs/wants exceed our limited resources

• exists when our limited resources exceed our unlimited needs/wants

• only applies to luxury items

The 4 Factors of Production (FOP) are

• rent for land, wages for labor, profit for capital, interest for entrepreneurship

• land, labor, capital, entrepreneurship

• land, labor, physical capital, financial capital

• land, labor, resources, profits

Which description is most correct about opportunity cost (OC)

• impacts small businesses more often than large businesses

• can be avoided if you have enough money

• is inherent in all decisions/choices

• can only be expressed in monetary terms

__________ is the fundamental, universal, and perpetual economic problem that no one is immune to.

• price floors/price ceilings

• Scarcity

• Shortage

• the study of microeconomics

Opportunity cost (OC) can be described as

• your number 1 tradeoff when making a choice

• the number 2 alternative in your list of choices

• is the next best choice and one you didn't choose

• all of these answers are examples of opportunity cost (OC)

What are the resources called that are needed to produce a good or service?

• Goods and services.

• Needs and wants.

• Factors of production.

• All of the above.

How many factors of production are needed to produce a good or service?

• 2

• 4

• 6

• 8

What are natural resources?

• Animals

• Things from nature (not man-made)

• Tree

• All of the above

What is labor?

• Hard Work

• People who only do the physical work.

• People who do the work to produce something.

• None of the above.