Economics Chapter 1 Quiz

Which of the following most directly contributes to why people must make choices when satisfying their wants and needs?

• Scarcity

• Factors of Production

• Unlimited reasources

• Business structure

Economics is the study of how people...

• Calculate their income tax

• Choose from limited resources to meet their unlimited wants and needs

• Respond to war and drought

• Gain knowledge and skills from study and time

The resources used to make all goods and services are the

• Factors of Production

• Production trade-offs

• Opportunity costs

• Production possibilities

What is the opportunity costs of a decision

• The best possible way the question could have been decided

• The different ways that a different person might have made the decision

• The most desirable alternative given up for the decision

• The series of alternative decisions that could have been made.

What is a factory building an example of?

• Physical capital

• Human capital

• An economic trade-off

• Technology

What does an economist (expert in economy) mean by the term land?

• Farmland only

• Food crops grown on farmland

• Goods and services that are produced in factories

• All natural resources used to produce goods and services

Knowledge and training one receives in order to do their job is considered?

• Land resources

• Physical capital

• Human capital

• Entrepreneurship

Coal, oil and crops are all examples of which of the following Factors of Production?

• Labor resources

• Capital resources

• Land resources

• Entrepreneurial resources

A high demand for a specific toy at Christmas time can result in a?

• Scarcity

• Shortage

• Both A and B

• Neither A or B

One thing that the production of possibilities curve illustrates is the-

• Choices a person can make between items

• Choices a government can make between items

• Combinations of two goods or services that can be produced

• Technological changes that can help to increase population