Econ Unit 1 Test

What is scarcity? 

• Giving something up to have something else
• Extra cost of production
• The condition that results form having unlimited wants with limited resources
• Rise in general level of prices and workers need more money

What is choice?

• The act of picking or deciding 
• The best option possible
• When something is very good
• When someone has no say in a matter

Which of the following is NOT a natural resource?

• Oil
• Water
• Car
• Air

Which of the following IS a capital resource?

• Wood
• Computer
• Labor
• Knowledge

My business makes tacos and maps. If I spend all my time making tacos, what is my opportunity cost? 

• Tacos
• Maps

On this PPC, which point is efficient? 

• A
• C
• D
• None

On the PPC, which point is inefficient?

• A
• B
• C
• D

On the PPC, which point is unobtainable?

• A
• B
• C
• D

Consumer Goods

• Desires for items that can only be obtained by spending money

• Tangible items produced for personal use

• Desires for things that can be obtained without spending money

• Productive resources; human and natural resources and capital goods

Money, products, and supplies used in the production of goods and services are called

• Capital Resources

• Human Resources

• Natural Resources

• Service Resources