Economics Quiz

Jenny is a senior in high school who needs to decide between going to college to earn a degree or beginning a career right away. She weighs her options, including the advantages and disadvantages of each option. What is this decision-making process called?

• incentives

• thinking at the margin

• tradeoffs

• cost-benefit analysis

Definition: deciding how to spend one more unit of a resource

• opportunity cost

• thinking at the margin

• cost-benefit analysis

• economics

The Production Possibilities Frontier (PPF) measures

• the economy of an efficiency

• the efficiency of an economy

• the number of shoes one economy can produce

• how many resources an economy has

You are tired of chewing your gum in class, so you stick it under your desk. You would probably never do this to your desk at home. Which economics concept explains this?

• opportunity cost

• scarcity

• Tragedy of the Commons

• market economy

What is not a factor of production?

• Land

• Labor

• Capital

• Production Curves

Scarcity forces people to_____________________

• Make Choices

• satisfy all their wants and needs

• Give up opportunity cost

The method a country uses to answer the three economic questions

• Economic System

• Economic Resources

• Capitalism

Which one of the factors of production is this?

• capital

• entrepreneur

• land

• labor

Which of the factors of production is this?

• capital

• entrepreneur

• land

• labor

The table shows the production possibilities for a country. Based on the table, which of the following production combinations is a possibility?

• 28 pizzas and 5 pairs of shoes

• 3 pairs of shoes and 23 pizzas

• 2 pairs of shoes and 23 pizzas

• 4 pairs of shoes and 15 pizzas