Economics Chapter 1

What is the fundamental economic problem facing all societies?

• No resources and no wants

• Equal resources and wants

• Limited resources and unlimited wants

• Unlimited resources and limited wants

Which of the following is an example of a non-durable good?

• Food

• Car

• Refrigerator

• Clothing

What is the monetary value of all final goods, services, and structures produced within a country's national borders during a one-year period called?

• National Income

• Gross Domestic Product

• Gross National Product

• Net Domestic Product

What is a tool, equipment, or other manufactured good used to produce other goods and services called?

• Consumer Good

• Service Good

• Durable Good

• Capital Good

What does a production possibilities curve represent?

• All possible combinations of goods and services an economy can produce when resources are scarce

• All possible combinations of goods and services an economy can produce when resources are fully employed

• All possible combinations of goods and services an economy can produce when resources are abundant

• All possible combinations of goods and services an economy can produce when resources are not fully employed

What is the social movement aimed at promoting the interests of consumers called?

• Communism

• Socialism

• Capitalism

• Consumerism

What is the mutual dependence of the economic activities of one person, company, region, or nation on those of another called?

• Economic Independence

• Economic Autonomy

• Economic Interdependence

• Economic Isolation

What is the quality of life based on ownership of necessities and luxuries that make life easier called?

• Quality of Life

• Standard of Living

• Life Quality

• Living Standards

What are markets in which productive resources are bought and sold called?

• Goods Markets

• Resource Markets

• Product Markets

• Factor Markets

What is a basic requirement for survival, including food, clothing, and shelter called?

• Good

• Want

• Need

• Luxury