Introduction to Economics - Perth Modern School

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

Which goal of national economies looks to maximize the benefit of resources while preventing waste?

• Economic Freedom

• Economic Equity

• Economic Efficiency

• Economic Growth

The limited availability of resources is known as...

• Scarcity

• Voluntary Exchange

• Profit

• Opportunity Cost

Voluntary exchange is the free and willing exchange of goods and services where both parties...

• Are worse off

• Are forced to exchange with one another

• Mutually Benefit

• Have no alternatives in exchange

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

A student must decide between going to the movies with friends or staying home and studying for a final exam. She chooses to stay home and study. Which economic concept describes going to the movies in this scenario?

• Comparative Advantage

• Equilibrium Point

• Income Effect

• Opportunity Cost