Unit 1 Basics of Economics #1

Economics can be described as the study of (a)  

• Money
• Choices
• graphing
• price ceilings and price floors

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

Emily is deciding what to do after high school. Right now her two options are: go to college or enter the workforce/get a job. She can only choose one. Emily decides to get a job. Which of the following is the opportunity cost of her decision?

• money

• job

• time

• college

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

The additional benefit of the use/comsumption of an additonal good or service

• Marginal benefit

• Marginal cost

• Utility

Vegetation, animals, minerals, air, water, climate

• Land Resources

• Labor Resources

• Capital Resources

• Entrepreneurs

An item used in production, such as tools, equipment, machinery, factories, etc

• Capital Resources

• Labor Resources

• Land Resources

• Entrepreneurs

The condition of scarcity can be described as one that

• afflicts only people and nations outside of the US

• 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

Which one would be considered a want?

• Water

• House

• Healthcare

• iPad

Amount of personal satifisfaction or pleasure one gets from consuming a good or service

• Utility

• Marginal Utility

• Marginal costs

• Negative Utility