Intro to Economics Test

What are the factors of production?

• Land, Technology, Dirt, Resources

• Land, Labor, Capital, Entrepreneurship

• Land, Labor, Entrepreneurship

• Resources used in the production of only services

The central problem in economics is:

• Government

• Busineseses

• Scarcity

• Opportunity Cost

The limited availability of resources is known as...

• Scarcity

• Voluntary Exchange

• Profit

• Opportunity Cost

A student must decide between going to the movies with friends or staying home and studying for a final exam. She chooses to stay home and study. Which economic concept describes going to the movies in this scenario?

• Comparative Advantage

• Equilibrium Point

• Income Effect

• Opportunity Cost

What is Economics?

• The study of the supreme court decisions

• The study of the choices people make to satisfy their unlimited wants and needs.

• The study of the environmental rights in society

• The study of historical choices in American Politics

What are the 3 basic Economic questions?

• Who, what, and for when to buy?

• Why, for what, and for whom to decide?

• When, why, and how to galvanize?

• What, how, and for whom to produce?

Your friend spends all night playing video games instead of studying for this quiz. What is the opportunity cost?

• Playing video games

• More time spent studying

• Eating noodles

• Voting in an election

▫Economic activities are usually centered toward the family, tribe, or ethnic group

• Traditional Economies

• Command Economies

• Market Economies

• Mixed Economies

Government or other central authority makes all economic decisions

• Mixed Economies

• Traditional Economies

• Market Economies

• Command Economies

Goods or services that are not necessary, but that we desire or wish for. Examples: video games, toys, concert tickets, etc.

• Demand

• Needs

• Wants

• Presents