Fundamentals of Economics

Which of these is used to produce a good or service?

• Trade-off

• Want

• Need

• Factors of production

Which of the following is true?

• Scarcity and shortage always exist

• Scarcity is temporary and shortage always exists

• Scarcity always exists and shortage is temporary

• Scarcity and shortage are temporary

Management falls under which factor of production?

• Leadership

• Labor

• Land

• None of the above

is the study of how individuals and businesses determine how to allocate scarce resources.

• Economics

• Entrepreneurs

• Opportunity cost

• Government

Scarcity is:

• Limited resources to meet unlimited demand

• The same thing as shortage

• A market condition in which the quantity supplied at the current market price is not enough to meet demand

• None of the above

Which of the following would NOT fall into the category of land as a factor of production?

• Water

• Trucks

• Coal

• Trees

When a business owner invests in machinery or tools to improve her employees' efficiency, she invests in capital.

• Physical

• Hornet

• Investment

• Human

Which of the following is an example of human capital?

• New printer

• Mental health services

• Tools

• Training

What is the most scarce resource?

• Air

• Water

• Time

• People

Which of the following can cause a shortage of a particular good?

• Increase in quantity demanded

• Increase in demand

• Increase in quantity supplied

• Increase in supply