EPF Module 1 Review

The opportunity cost of a good is

• its price in dollars and cents.

• the alternative goods forgone.

• the price of alternative goods foregone.

• none of the other options

What is the production possibilities curve?

• a graph that shows how much an economy can produce between 2 goods
• how much money something is
• the opportunity one has to give up in order to gain something else
• land, labor, capital, entrepreneurs

which of the following are scarce resources?

• sunlight

• land

• labor

• air

• clean water

what is the term for giving up goods to obtain another?

• trade-offs

• opportunity costs

economics is based on the

• market and free trade concepts

• allocation of scarce resources

• study of the stock market

• transfer of money

WHAT ARE THE 4 FACTORS OF PRODUCTION?

• Land, Capital, Need & Want

• Land, Labor, Capital, Entrepreneurs

• Water, Air, Food & Shelter

• Land, Capital, Good & Service

AN ENTREPRENEUR IS A PERSON WHO _______________.

• owns their own business

• uses goods and services to produce labor, land, and capital.

• uses land, labor, and capital to produce good and services.

• loves nature and runs a business

Which one of the factors of production is this?

• capital

• entrepreneur

• land

• labor

Definition of Marginal Utility

• the satisfaction from consumption

• to total satisfaction from consuming a product

• the extra satisfaction from the last unit consumed

• the extra consumption from last unit consumed

You made a good decision if:

• Marginal cost is greater then marginal benefit

• Marginal cost is less than marginal benefit

• Marginal benefit is greater then marginal cost

• Marginal benefit is less then marginal cost