Econ Quiz Chapters 1-5

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

Which one of these definitions best describes 'Opportunity Cost'?

• The cost of making one decision over another

• The opportunity that will cost you loads of money

• The cost for the opportunity to buy anything you want

A garbage truck driver is an example of which Factor of Production?

• labor
• land
• entrepreneurship
• capital

Which factor of production would you consider a lawn mower?

• Land
• Labor
• Capital
• Entrepreneur

Entrepreneurs are...

• people with all their efforts and abilities

• individuals who start a new business or bring a product to market.

• The "gifts of nature" or natural resources not created by human effort.

• the tools, equipment, and factories used in production of goods and services

Buying a car makes you a ....

• Consumer

• Producer

A producer is....

• Someone who sells something

• Someone who buys something

• Someone who only grows fruit

• Some who travels a lot

What are the 3 basic economic questions every nation must answer?

• when to produce, where to produce, how to produce

• what to produce, how to produce

• what to produce, how to produce, and for whom to produce

• where to produce, how to produce, why to produce