Unit 1 Test

Which of the following is an example of a durable good?

• A Car

• Clothing

• Food

• Paper Product

Which of the following IS NOT one of the questions all societies face?

• What to produce

• How often to produce

• How to produce

• For Whom to produce

What is the fundamental economic problem facing all societies?

• Competition

• Too many resources

• Too many consumers

• Scarcity

Which of the following is NOT a factor of production?

• Entrepreneurs

• Land

• Opportunity Cost

• Capital

The production possibilities curve illustrates all possible combinations of __________.

• Output

• Products

• Input

• Services

Which of the following is not a consumer right?

• Right to Choose

• Right to be Informed

• Right to Safety

• Right to Exchange

The division of labor and specialization can improve __________.

• Pricing

• Productivity

• Consumer Habits

• Standard of Living

Which of the following is NOT a feature of the Circular Flow of economic activity?

• Government Agencies

• Business

• Production Markets

• Factor Markets

A major contribution to productivity comes from investments in _________.

• Facilities

• Land

• Stocks

• Human Capital

Which of the following is not a characteristic of a traditional economy?

• New ideas are discouraged & innovation is rare

• There is a lower standard of living

• Life is stable and predictable

• There is a high degree of consumer satisfaction