Econ Unit 1 Quiz

Which of the following is a problem faced by ALL economic systems?

• Inflation

• Poverty

• Federal Debt

• Scarcity

Economics, as a field of study, is BEST described as

• How people deal with investment alternatives

• How government controls the money supply

• How society deals with the problem of scarcity

• How everyone spends their money

The term that can be defined as the loss of the next best use of resources is:

• Scarcity

• Capital

• Opportunity Cost

• Cost Efficient Production

Why do people have to make choices?

• People have limited wants and needs

• People have unlimited wants and scarce resources

• All governments ration who receives scarce resources

• Opportunity costs must be paid

A good that is used to help increase future production can be defined as:

• Artificial Good

• Natural Good

• Capital Good

• Consumer Good

The method used by a society to produce and distribute goods and services is its

• Economic System

• Political System

• Industrial System

• Production System

The term underutilization can be defined as:

• What you give up or what you did not choose

• The use of fewer resources than the economy is capable of using

• The right to produce goods and services

• The act of buyers and sellers coming together willingly in the marketplace