Econ - Unit 1 Review - Intro to Economics

Which of the following defines "economics"?

• The study of money and finance

• The study of how people use scarce resources to make choices

• The study of government and policies

• The study of social interactions

Which of the following is NOT a factor of production?

• Land

• Labor

• Capital

• Entrepreneurship

• Money

Scarcity occurs because:

• There is an unlimited supply of resources

• There are unlimited wants but limited resources

• 1. People are not willing to work hard enough 

• Governments control the distribution of resources

Which of the following is NOT a key economic question?

• 1. What goods and services should be produced?

• 1. How should these goods and services be produced?

• 1. Who consumes these goods and services?

• 1. How should it be ensured that goods and services are paid for?

Each society determines who will consume what is produced based on

• its unique combination of values and goals.

• the amount of factor payments.

• its needs and wants.

• economic equity.

Individuals make choices for what is produced and are given the opportunity to buy, sell, and make goods WITHOUT government intervention

• Market

• Mixed

• Traditional

• Command

Government controls all economic decisions

• Market

• Mixed

• Traditional

• Command

An economy/ government deciding whether to produce military weapons or consumer goods is call a(n)

• Guns or butter decision

• Opportunity cost

• Economic choice

• Trade off

How would you describe an economy that uses its resources to make the greatest possible number of goods and services?

• Efficient

• Perfect

• Underutilized

• Presently Impossible

What is the opportunity cost of a decision?

• Series of decisions that could have been made

• Best way the question could have been decided

• Different ways that a person might have made the decision

• Most desirable alternative given up for the decision