EPF - Unit 1 Quiz 1

A good is

• The action or activity that one person performs for another

• a physical object that someone buys

• an item we desire but that is not necessary to survival

• an item we need

Paul makes coffee and sells it to teachers in the staff parking lot at the beginning of each morning. In this scenario Paul is a _______________ and the teachers are ______________.*

• Resource ; Consumer

• Producer ; Resource

• Consumer ; Producer

• Producer ; Consumer

The study of the production and consumption of goods and the transfer of wealth to produce and obtain those goods is referred to as*

• Macroeconomics

• Consumer relations

• Economics

• Utilization

Which of the following statements is true about scarcity*

• Scarcity is the inability to satisfy all wants

• The poor and the rich both face scarcity

• I have found all answers to be correct

• Scarcity arises because human wants are greater than the resources available

In economics, choice occurs because*

• people like to pick things

• there are many resources for energy supplies

• resources (natural, human, and money) are scarce so we must choose among various alternatives

• A resource costs money and we need alternative sources so we do not pay too much

The value of an alternative that you did not choose is called*

• Opportunity cost

• Trade off

• Exemptions

• Limitations

"For each unit consumed there is a decline in marginal utility." This refers to*

• Marginal cost

• Disutility

• Law of diminishing Marginal Utility

• Marginal Benefit

"Your grades need to come up. For every B you bring home, I will give you $10." This would be an example of*

• marginal benefit

• unintended consequences

• trade off

• incentives

If something gives you high satisfaction... It gives you ....*

• Agreeableness

• Margin

• Utility

• Trade off

Is there anything you want Ms. Degrush to be aware of before we move forward in this unit?