Economics Unit #1

What is scarcity?

• Equal distribution of resources to meet all wants and needs
• Abundance of resources in relation to limited wants and needs
• Limited availability of resources in relation to unlimited wants and needs
• Unlimited availability of resources in relation to limited wants and needs

Which of the following is a scarce resource?

• Fresh air
• Fossil fuels
• Sunlight

Which of the following is not a factor of production?

• Entrepreneurship
• Labor
• Finished Goods

• Land

Which points represent all attainable production numbers?

• E,C,A

• E,B,D

• E,B,D,A

• A

What is the opportunity cost from moving from Point A to Point B?

• 5

• 0

• Increase

• Decrease

Which points represent inefficient (ineffective) use of current resources?

• E,C,A

• C

• E,B,D,A

• A

Which points represent impossible use of current resources?

• E,C,A

• C

• E,B,D,A

• A

Which points represent efficient (effective) use of current resources?

• E,C,A

• C

• E,B,D

• A

What country has an absolute advantage in potatoes?

• United States

• Ireland

• Both

• Neither

What country has an absolute advantage in wheat?

• United States

• Ireland

• Both

• Neither