Econ 1st 3weeks Test Review

Economic growth is most closely associated with an increase in:

• goods and services

• economic interdependence

• opportunity cost

• capital and labor

Which of these do economists use to illustrate all conceivable combinations of output?

• a division of labor

• a factor of production

• a production possibilities curve

• a cost-benefit analysis

Which of these is most closely associated with “opportunity cost?”

• consumerism

• trade-offs

• entrepreneurs

• productivity

How many distinct “factors of production” do economists recognize?

• 1

• 2

• 3

• 4

Economics is best defined as the study of how societies deal with:

• the factors of production

• the problem of scarcity

• the paradox of wealth

• the division of labor

The amount of output in a specific amount of time with a given amount of resources is referred to as

A nation’s wealth is made up of​ (a)  

• tangible items
• intangible items
• all goods and services

Which of the following descriptions best explains the meaning of opportunity cost?

• the initial cost of starting a new business

• the cost of business failure

• the cost of choosing one alternative over another

• the risk associated with producing a new item

Dave gets a job at a grocery store, which pays him an hourly wage in exchange for his labor. Dave is participating in:

• the factor market

• the product market

• human capital

• land

Opportunity cost refers to​ ​ (a)  

• the value of the next best alternative
• the price of admission
• the dollar amount of goods and services