Economics TEKS Unit 1

What is the basic economic problem?

• Scarcity

• Overproduction

• Abundance

• Excess

Name the four factors of production.

• water, air, fire, and earth

• government, technology, education, and infrastructure

• land, labor, capital, and entrepreneurship

• money, goods, services, and resources

Define scarcity in the context of economics.

• Abundance of resources in comparison to limited wants and needs

• Equal availability of resources and wants and needs

• Unlimited availability of resources in comparison to limited wants and needs

• Limited availability of resources in comparison to unlimited wants and needs

Explain the concept of opportunity cost.

• Value of the next best alternative given up

• The cost of producing an additional unit of a good

• The total cost of all available options

• The cost of the chosen alternative

How does the concept of scarcity relate to the factors of production?

• Scarcity has no impact on the factors of production

• Scarcity only affects the quantity of the factors of production

• Scarcity only affects the price of the factors of production

• Scarcity affects the availability and allocation of the factors of production.

What are the different types of resources that contribute to production?

• Labor resources, machinery resources, and technology resources

• Water resources, air resources, and land resources

• Intellectual resources, emotional resources, and spiritual resources

• Natural resources, human resources, and capital resources

Discuss the relationship between scarcity and choice.

• Scarcity has no impact on choice

• Choice has no impact on scarcity

• Scarcity and choice are completely unrelated

• Scarcity and choice are closely related as scarcity forces individuals and societies to make choices about how to allocate limited resources.

How does the concept of opportunity cost impact decision making?

• It has no impact on decision making

• It forces individuals to consider the trade-offs involved in choosing one option over another.

• It only impacts long-term decisions

• It only applies to financial decisions

Explain the role of entrepreneurship as a factor of production.

• Entrepreneurship only involves providing financial capital

• Entrepreneurship has no role in organizing production

• Entrepreneurship is not a factor of production

• Entrepreneurship organizes the other factors of production to produce goods and services.

What is the role of capital as a factor of production?

• Capital only involves providing financial resources

• Capital has no role in organizing production

• Capital is not a factor of production

• Capital includes all man-made resources used in the production process.