Unit 1 Review

What is positive statement?

• One that makes a value judgement

• A Statement of a fact or a hypothesis

• A statement that expresses a negative sentiment
• A statement that expresses a command or order

What are the factors of production

• Land, Labor, Capital, Entrepreneurship
• Money, Time, Energy, Resources
• Raw materials, Machinery, Labor, Time
• Resources, Money, Energy, Labor

What is Utility?

• The value that people derive from goods and services

• One that makes a value judgement

• Statement of a fact or a hypothesis

• A type of vehicle

What is Normative Statement?

• A statement that describes a scientific fact

• A statement that describes what is
• One that makes a value judgement

• A statement that describes a mathematical equation

What is Production Possibilities Model?

• A model that shows the relationship between a company's profits and its production costs
• A model that shows the goods and services that an economy produces

• A model that shows the optimal distribution of resources in a market economy
• A model that shows the relationship between supply and demand in a market

What is a Choice at the margin?

• A decision made by comparing all possible options
• A decision made by considering only the most beneficial option
• A decision made by considering only the least beneficial option
• A decision to do a little more or a little less of something

What is free good?

• A good that is scarce and has a price
• A good that is available without limit
• A good for which the choice of one does not require that we give up another

• A good that is expensive and rare

What is demand elasticity?

• The measure that it dictates how drastically buyers will decrease or increase their demand for a good when the price changes

• The measure of the change in quantity supplied in response to a change in price
• The measure of the change in quantity demanded in response to a change in income
• The measure of the change in quantity supplied in response to a change in income

What is Margin?

• Margin is the difference between the cost price and selling price
• Margin is the space around the edge of a page
• Margin is the current level of an activity

• Margin is a type of financial security

What is the elasticity of supply?

• It measures how much the amount supply changes when there is a price change

• It measure of the responsiveness of quantity demanded to a change in price

• It measure of the responsiveness of quantity supplied to a change in income

• It measure of the responsiveness of quantity demanded to a change in income