Scarcity/PPC Review

What factor of production is a tractor?

• land

• labor

• capital

• entrepreneurship

What is the alternative you face if you decide to do one thing rather than another called?

• tradeoff

• opportunity cost

• incentive

• variable cost

What is the degree to which resources are being used efficiently to produce goods and services called?

• specialization

• productivity

• division of labor

• consumption

What are the gifts of nature that make production possible?

• consumer goods

• human capital

• natural resources

• input

Which would not be considered as capital by an economist?

• a share of corporate stock issued by General Motors

• an automobile used by General Electric

• a crane used by a building contractor

• a razor used by a barber

Which would not be classified by economists as land?

• two thousand acres of virgin forest

• a hydroelectric dam

• crude oil reserves

• iron ore deposits

What is the term for the individual that brings together the other economic resources necessary for production?

• government units

• entrepreneurs

• corporate shareholders

• the managerial elite

The fundamental economic problem is that resources are finite, but economic wants are insatiable. What terms best describes the problem?

• trade-off

• productivity

• demand

• scarcity

Which factor of production include any form of human effort exerted in production?

• land

• labor

• capital

• entrepreneurship

If the labor force in an economy is not fully employed, then

• the economy is operating outside of its production possibilities curve

• the economy is operating on its production possibilities curve

• the opportunity cost of producing more of one good is negative

• the economy is operating inside its production possibilities frontier