IB Economics SL - Unit 1 - 1.1 What is economics?

"THIS" is used in the production process to produce output—that is, goods and services. What is "THIS"?

• Land

• Labor

• Scarcity

• Factors of production

"THIS" is one of the factors of production provided by nature: for example, copper, crude oil, and natural gas. What is "THIS"?

• Land

• Labor

• Scarcity

• Factors of production

"THIS" is one of the factors of production, made by human and used in the production of other goods: for example, machinery, tools, and buildings. What is "THIS"?

• Land

• Labor

• Capital

• Entrepreneurship

"THIS" is one of the factors of production involved with establishing innovative ideas and putting them into action by planning and organizing production. What is "THIS"?

• Land

• Labor

• Capital

• Entrepreneurship

John is an ambitious engineer. Taking advantage of his knowledge in material engineering, he invented an innovative technology that can grow diamond from the laboratory. He obtained a patent (an exclusive legal right) to the new technology he has invented. Eventually, John decided to open his own diamond company by investing his own money. John hired 5 employees and rented a laboratory where they can grow diamond.

The underlined words/phrases belong to which factors of production?

• Land

• Labor

• Capital

• Entrepreneurship

John is an ambitious engineer. Taking advantage of his knowledge in material engineering, he invented an innovative technology that can grow diamond from the laboratory. He obtained a patent (an exclusive legal right) to the new technology he has invented. Eventually, John decided to open his own diamond company by investing his own money. John hired 5 employees and rented a laboratory where they can grow diamond.

The underlined words/phrases belong to which factors of production?

• Land

• Labor

• Capital

• Entrepreneurship

John is an ambitious engineer. Taking advantage of his knowledge in material engineering, he invented an innovative technology that can grow diamond from the laboratory. He obtained a patent (an exclusive legal right) to the new technology he has invented. Eventually, John decided to open his own diamond company by investing his own money. John hired 5 employees and rented a laboratory where they can grow diamond.

The underlined words/phrases belong to which factors of production?

• Land

• Labor

• Capital

• Entrepreneurship

John is an ambitious engineer. Taking advantage of his knowledge in material engineering, he invented an innovative technology that can grow diamond from the laboratory. He obtained a patent (an exclusive legal right) to the new technology he has invented. Eventually, John decided to open his own diamond company by investing his own money. John hired 5 employees and rented a laboratory where they can grow diamond.

The underlined words/phrases belong to which factors of production?

• Land

• Labor

• Capital

• Entrepreneurship

What economic concept is being illustrated here: "Human needs and wants are unlimited while resources to satisfy those needs & wants are limited."

• scarcity

• opportunity cost

• economic choice

• free good

What economic concept is being illustrated here: "Because the limited resources cannot satisfy all the human needs and wants, we should decide how to allocate resources in the most efficient way."

• scarcity

• opportunity cost

• economic choice

• free good