Introduction to Economics, Opportunity Cost and PPF

Economics is the study of how people make choices about ways to use _______________ resources to fulfill their unlimited wants and needs.

• Limited

• Unlimited

• Natural

• Man-made

What are the factors of production?

• Land, Technology, Dirt, Resources

• Land, Labor, Capital, Entrepreneurship

• Land, Labor, Entrepreneurship

• Resources used in the production of only services

The factor of production that includes natural resources is known as:

• Land

• Labor

• Capital

• Entrepreneurship

The central problem in economics is:

• Government

• Busineseses

• Scarcity

• Opportunity Cost

The limited availability of resources is known as...

• Scarcity

• Voluntary Exchange

• Profit

• Opportunity Cost

Point A inside this Production Possibilities Curve represents:

• Resources are being inefficiently used

• Production is not attainable

• Production is possible if there is an increase in resources

• Production possibilities are going to decrease

What does a Production Possibilities Curve illustrate?

• Choices result in voluntary exchange

• Production is impossible

• Choices result in trade-offs because of scarce resources

• Production of multiple goods creates inefficiency

Which of the following is NOT a basic question of economic systems?

• What should be produced?

• For whom should it be produced?

• How long should it be produced?

• How should it be produced?

The graph used to illustrate the impact of scarcity on the economy is known as a:

• Cost-Benefit Analysis

• Supply Curve

• Production Possibilities Curve

• Demand Curve

What would be an example of a capital resource

• water

• trees

• business owner

• school building