Econ U1 3wks CP

Need or Want

• Need

• Want

Need or want

• want

• need

What are physical objects that are PRODUCED?

• goods

• services

What do you call actions that are performed for someone?

• Goods

• Services

What best reflects the goal of a consumer?

• To acquire the largest possible quantity of goods.

• To acquire the largest possible variety of goods.

• To maximize utility.

• To save money.

Total utility is the benefit received from consuming an extra unit of a good.

• TRUE

• FALSE

The definition of the law of diminishing marginal utility

• As more units are consumed the marginal utility falls.

• As more units are consumed the marginal utility increases.

• As price decreases quantity demanded increases.

• As price increases consumers are willing to pay more.

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

The crops and animals on a farm are examples of which factor of production?

• Land

• Labor

• Capital

• Entrepreneurship