Economics Chapter 1 and 2 Review

This word describes the idea that there are never enough resources to meet societies unlimited wants.

• consumer soverignity

• scarcity

• product market

• profit

which is not considered a factor of production?

• land

• capital

• money

• labor

True of False:

a chair is a good

• true

• false

Bob is really good with numbers and decides to become an accountant. What is this called?

• consumer choice

• specialization

• free market

• voluntary exchange

Which economic law says you are happiest with your 1st Christmas present but a little less happy with the next one?

• law of increasing opportunity cost

• Cost benefit analysis

• law of diminishing marginal utility

• no free lunch principle

Your mom gives you $30 to clean the car. What is this an example of?

• incentive

• an opportunity cost

• marginal benefit

• a good

Which economic system is shrinking under the pressure of the modern age?

• command

• mixed

• market

• traditional

Who is the father of ecnomics?

• Karl Marx

• Adam Smith

Which economy has low risk for producers but little variety for consumers?

• command

• market

• mixed

• traditional

What is an example of a mixed economy?

• The government pays to build a road and hires a private company to build it

• Government decides you will be a rocket scientist and pays for education

• A woman makes tamales and sells them at the farmers market.

• A family produces everything they need on their own farm.