Econ 1.1 Blind

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

Why do entrepreneurs take risks?

• to set their own work hours

• to earn a profit for themselves

• to provide G/S to their customers

• to provide salaries and benefits to their employees

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

• Land

• Labor

• Capital

• Entrepreneurship

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

• price floors/price ceilings

• Scarcity

• Shortage

• the study of microeconomics

The difference between scarcity and shortage is

• scarcity is a natural & re-occurring condition; shortage is a man-made condition

• shortage only happens with new products

• shortage is a natural & re-occurring condition; scarcity is a man-made condition

• shortage is the fundamental, universal economic problem

Select the item that is NOT physical capital

• drills used by a dentist

• an Uber driver's car

• a college degree completed by a 35 year old mother of 3 kids

• a computer in an office

Opportunity cost (OC)

• can be avoided by wealthy people

• is inherent in all decisions/choices

• can only be expressed in monetary terms

• impacts small businesses more often than large businesses

George earns a $250 bonus at his job for increasing his output by an additional 50% two weeks in a row. He makes a list of what he wants to buy with his bonus: 1: the latest model of Adidas athletic shoes; 2: Air Pods; 3: a new coat. He buys Adidas. What is his opportunity cost?

• the Air Pods

• the shoes

• the coat

• the cash