Economics Quiz

What are the four factors of production?

• A. Needs, wants, choices, trade-offs

• B. Workers, management, entrepreneurs, capital

• C. Land, labor, capital, entrepreneurship

• D. Human capital, physical capital, intellectual capital, consumer goods

Which of the following is NOT a benefit a business will likely attain from physical capital?

• A. Increased productivity

• B. Better entrepreneurial knowledge

• C. Fewer natural resources are required

• D. Lower costs

Why is there scarcity even in an affluent country like the United States?

• A. Entrepreneurs are scarce and companies need leaders

• B. Resources are limited but wants are unlimited

• C. Some people are poor while others are wealthy

• D. Wants are limited but needs are unlimited

Which of the following is an example of a land resource that a person who owns a restaurant would need?

• A. The servers who wait on customers

• B. The farmer who grows the vegetables served at the restaurant

• C. The water used for drinking and cleaning

• D. The building where the restaurant is located

Which of the following is true about the photo shown here?

• This man is improving his human capital by learning a skill

• This man is using up his physical capital by working hard

• This man is providing a service to the hospital

• This man is gaining financial capital by working

Which of the following is an example of scarcity rather than shortage?

• Extremely hot temperatures lead to increased air-conditioner use and power outages

• There aren’t enough software engineers to fill all the job openings in Silicon Valley

• Newly discovered Van Gogh paintings are put up for auction and sell for millions

• During the holiday season, an outfitter runs out of skis.

Because of scarcity, every decision involves a

• cost/benefit analysis

• trade-off

• marginal cost

• marginal benefit

An opportunity cost is

• the best alternative given up when a decision is made

• the worst alternative that is given up when a decision is made

• a choice that is made when no alternative is very good

• the cost of making decisions related to producing goods

In a cost/benefit analysis, what would be the benefit of taking the Dallas North Tollway instead of Routes 75 and 380?

• That route would cost less in tolls

• That route would cost more in tolls

• That route would require more travel time

• That route would require less travel time

Based on this infographic, what is the marginal cost of building the 1001st toy in this factory?

• $2

• $10

• $2,000

• $10,000