Basic Economic Principles

How is a benefit defined as a major component of economics?

• It is the product that is being produced in an economic system.

• It is a sacrifice that must occur for a product to be approved.

• It is the value received from making a choice between options.

• It is the decisions that are being made for consumers and owners.

What is the value of another opportunity called that is given up to produce or consume a good?

• opportunity benefit

• opportunity cost

• opportunity resource

• opportunity tool

Why is economics an important area to fully understand so important decisions may be made?

• It is concerned with the production, distribution, and consumption of goods and services.

• It is an important strategy used by the federal government to control goods and services.

• It is a manner of producing goods and services that will be sent overseas as trade.

• It is concerned with the laws that regulate the economy, so mistakes are minimal.

Why are needs essential in peoples lives?

• They are items that are not necessary for daily living.

• They are items that are expensive to purchase.

• They are the items that people don’t rely on.

• They are items such as food and shelter.

What is a free good?

• A temporary item that is only available as seasonal products.

• Any good whose supply is greater than the demand.

• Any product or service that doesn’t charge a fee.

• Any good or service that is free to all.

What is the study of individuals and firms called in a single market with an understanding that there exists scarcity and government regulations?

• macroeconomics

• economic systems

• microeconomics

• economic equality

How is macroeconomics defined?

• It is the study of larger groups of the economy such as a country or government.

• It is the study of people and local governments within a city or government.

• It is the study of a group of people who migrated to the United States.

• It is the way a large group of people organize themselves within a local government.

What is the physical energy called that is supplied by humans?

• intensive

• short

• values

• labor

What is a good example of capital?

• cash

• a loan

• trees

• jobs

What is the most valuable asset, typically, that is owned by farmers?

• vegetables

• grain

• land

• cooperatives