Scarcity and Factor of Production

Consumers are powerful because

• ​they have more rights than corporations.

• ​they help decide a business’s opportunity costs.

• they drive decisions about what to produce

• their interests force producers to behave ethically

The efficient use of scarce resources leads to an increase in

• ​productivity

• investment

• scarcity

• capital

Consumers waiting in long lines for a new product is an example of

• consumerism

• consumer rights

• consumer responsibilities

• scarcity

Which of the following descriptions best explains the meaning of opportunity cost?​

• ​the initial cost of starting a new business

• ​the cost of business failure

• the cost of choosing one alternative over another

• the risk associated with producing a new item

The most comprehensive measure of a nation’s wealth is provided by its

• ​gross domestic product.

• TINSTAAFL rating.

• product possibilities curve

• capital goods

When a business needs to decide whether a certain action is worth the cost, the most helpful analysis would be a(n)

• ​production possibility comparison.

• ​cost-benefit analysis.

• ​economic model.

• needs assessment.

The study of economics involves​

• explaining how people deal with scarcity.

• ​studying how things are made, bought, sold, and used.

• explaining how incomes are earned and how jobs are created.

• all of the above

Dave gets a job at a grocery store, which pays him an hourly wage in exchange for his labor. Dave is participating in

• entrepreneurship.

• human capital

• the product market

• the factor market

​The amount of output in a specific amount of time with a given amount of resources is referred to as 

• productivity.

• human capital

• efficiency

• investment risk.

When deciding how to use resources, you need to evaluate the costs and benefits of each choice to decide which meets your criteria. These are called

• trade-offs

• opportunities

• resource frontiers

• priorities.