Thinking like an Economist Test

Resources are unlimited so we can produce enough to meet everyone's wants and needs.

• True

• False

What is the condition that results from society not having enough resources to produce all the things that people want?

• economics

• opportunity cost

• scarcity

• none of the above

What is economics?

• The study of money

• The study of how people try to satisfy their wants and needs

• The study of how government regulates business

• The study of how profit is made

Our needs and wants are usually in the form of goods and services that are useful, relatively scarce, and what?

• valuable

• transferable

• natural

• none of the above

Because resources are scarce, everything we do has a what?

• Cost

• Profit

• Purpose

• Limited use

Which is not one of the four main types of economic systems?

• Market

• Traditional

• Command

• Governmental

Which of the following is one of the 3 economic questions all societies must ask?

• What to produce?

• How to produce?

• For whom to produce?

• All of the above

What is a modern version of a command economy when the government owns some, but not all, of the factors of production?

• Socialism

• Capitalism

• Anarchy

• Market

Which is not a factor of production?

• Labor

• Capital

• Land

• Wealth

What is opportunity cost?

• The cost of acquiring more resources

• The cost of losing access to certain facets of production

• The value of the next best alternative given up