Unit 1 Test Review Economics

What is the major economic problem?

• Opportunity Cost

• Scarcity

• Equality

• Security

A company makes cars and trucks. If it decides ot make more trucks and less cars, what is the trade off?

• trucks

• workers

• cars

• money

What is the opportunity cost frmo moving from point b to point c?

• 2 calzones

• 2 pizzas

• 1 pizza

• 1 calzone

Which is true?

• Command economies are most common

• Free market economies are most common

• Mixed economies are most common

Scarcity exists because

• Supplies of resources are unlimited

• Population is growing very slowly

• Innovation causes unemployment

• Human needs and wants are greater than limited resources

Resources made by humans to use in the production of a good or service are called

• Services

• Production

• Capital

• Labors

Your next best option when making a decision is called

• Opportunity Cost

• Scarcity

• Trade off

• Suffering

When you make a decision, you give up other things. These are called

• Opportunity Costs

• Scarcity

• Workers

• Trade Offs

Resources provided by nature that are used in the production of goods and services are

• Land

• Labor

• Human Capital

• Physical Capital

Workers or actions they take and are paid for in the production of goods and services are

• Land

• Labor

• Physical Capital

• Human Capital