Economics Vocab Quiz 2

What are capital goods?

• Services provided by a company

• Tangible assets used in the production of other goods and services

• Money used for personal expenses

• Intangible assets used for personal use

Answer explanation

Capital goods are tangible assets used in the production of other goods and services.

What is a correlation?

• a relationship between two factors, pieces of data, or other variables

• The difference between two different types of economics

• A form of economic thinking that describes how people make money

• A relationship between normative and assimilative economics

Answer explanation

A correlation is a relationship between two factors or variables.

What does economic efficiency mean?

• Using resources in a haphazard and inefficient manner

• Spending resources without any consideration for waste

• Using resources in the most optimal way to maximize production and minimize waste

• Maximizing waste and minimizing production

Answer explanation

Economic efficiency means using resources optimally to maximize production and minimize waste.

What is an entrepreneur?

• A person who invests in the stock market

• A person who works for a company as an employee

• A person who starts a business or organization, taking on financial risks in the hope of profit.

• A person who is a professional athlete

Answer explanation

An entrepreneur is a person who starts a business or organization, taking on financial risks in the hope of profit.

What is human capital?

• Skills, knowledge, and experience possessed by an individual or population

• The total population of a country or region

• Physical characteristics and traits of an individual or population

• Money and assets owned by an individual or population

Answer explanation

Human capital refers to the skills, knowledge, and experience possessed by an individual or population. It emphasizes the importance of human skills and expertise in driving economic growth and development.

What is an input in economics?

• Labor used to produce goods and services

• Money used to buy goods and services

• Resources used in the production of goods and services

• Land used for agricultural purposes

Answer explanation

An input in economics refers to the resources used in the production of goods and services.

What is labor in economics?

• The act of resting and not working

• Physical and mental effort exerted by humans in the production of goods and services

• The process of giving birth to a child

• The study of rocks and minerals

Answer explanation

Labor in economics refers to the physical and mental effort exerted by humans in the production of goods and services.

What is land in economics?

• All natural resources

• A type of currency

• A form of investment

• A type of labor

Answer explanation

Land in economics refers to all natural resources. It includes everything from forests and minerals to water and air. It is an essential factor of production and plays a crucial role in economic activities.

What is the law of diminishing marginal utility?

• The law of increasing marginal utility

• The law of constant marginal utility

• The law of unlimited marginal utility

• the quantity of a good or service consumed increases, the benefits for the consumer of each additional unit decrease

Answer explanation

The law of diminishing marginal utility states that as the quantity of a good or service consumed increases, the benefits for the consumer of each additional unit decrease.

What is marginal utility?

• The total satisfaction or benefit from consuming a good or service

• The cost of producing an additional unit of a good or service

• The average satisfaction or benefit from consuming a good or service

• Additional satisfaction or benefit from consuming an additional unit of a good or service

Answer explanation

Marginal utility refers to the additional satisfaction or benefit gained from consuming an additional unit of a good or service.