Fundamentals of Economics Review (Topic 1)

These inputs are used to produce a good or service

• need

• want

• factors of production

• trade-off

The difference between scarcity and shortage, is that scarcity ​ (a)   exist and a shortage is ​ (b)   .

• always
• temporary
• want
• need
• services

Which factor of production does management fall under?

• leadership

• labor

• land

• its not a factor of production

_________ is the study of how individuals and businesses decide how to allocate scarce resources.

• Entrepreneurs

• Government

• Opportunity Costs

• Economics

Scarcity is...

• the same thing as shortage

• When there is not enough of a limited resource to meet unlimited demands

• A market condition where the quantity supplied at the current market price is not enough to meet the demand

• none of the answers are correct

Which of the following does not fall within the category of land as a factor of production?

• coal

• trees

• water

• trucks

When business owners invest in machinery or tools to make their employees more efficient, this is called ​ (a)   capital.

• physical
• human
• investment

Which of these are examples of human capital?

• tools

• new printer

• providing training

• providing mental health services

What is the most scare resource?

• time

• water

• air

• people

What can cause a shortage of a particular good?

• Increase in supply

• Increase in quantity demanded

• Increase in quantity supplied

• Increase in demand