BE Unit 2 2.02 Test B

Into what two categories can wants be divided?

• Unlimited and limited

• Unlimited and economic

•                 Economic and noneconomic

• Limited and economic

Seeing a movie at a theatre would be considered a(n) __________ want

• economic

• unlimited

• limited

• noneconomic

Friendship would be considered a(n) __________ want.

• economic

• limited

• unlimited

• noneconomic

Which one of the following groups of words best describes wants

• Limited, changing, and compensating

• Unlimited, changing, and competing      

• Limited, unchanging, and competing

• Unlimited, unchanging, and compensating

Water and air are examples of __________ resources, while people are considered to be __________ resources.

• natural; human

• physical; mental

• capital; human

• mental; natural

In economics, capital goods include

• labor and management.

• mental and physical work

• buildings and equipment.

• trees and water.

Why are resources considered limited?

• Everyone has them, and they change.

• There are not enough available for everyone to have as much of them as desired.

• There are so many that people must decide which ones to choose at any one time.

• Entrepreneurs do not invest enough of them.

A gap between unlimited wants and limited resources creates

• economics.

• economizing.

• a producer.

• increasing distribution.

John only had $40 to spend and couldn’t decide whether to buy a new pair of jeans or to go to an amusement park. He finally decided to spend his money on the amusement park. What was the opportunity cost of his decision

• New pair of jeans

•                 $40

• Trip to amusement park

• No opportunity cost was involved.

A manager is willing to accept the production of fewer products as long as her workers produce higher quality products. The manager is making a(n)

• exchange

• trade off

• capital good

• distribution