What is Economics Checkpoint 1

Economics is mainly concerned with:

• abundance

• efficiency

• unemployment

• scarcity

Scarcity arises only in

• poor countries where incomes are often too low to satisfy basic needs

• rich countries where the want of material goods often exceeds the ability to acquire them

• market economies where the price mechanism allocates resources

• situations where available resources cannot satisfy human needs and wants

The value of the best alternative that is foregone when making a choice is referred to as

• production possibility

• opportunity cost

• productive efficiency

• scarcity

Which of the following questions is not one of the three basic questions of economics?

• What should we produce?

• How should we produce?

• When should we produce?

• For whom should we produce?

Which of the following is not a factor of production?

• labour

• land

• money

• entrepreneurship

Which of the following refers to capital as man-made goods, including tools and equipment used to produce other goods?

• natural capital

• human capital

• physical capital

• financial capital

Sustainability involves

• businesses making enough profit to remain competitive in their markets

• using resources in a way that does not reduce their quantity or quality over time

• households earning enough income to avoid falling in to poverty

• using fossil fuels efficiently so they are not depleted quickly

A free good is

• a good given to consumers for no charge

• a good that can be consumed by anyone, including children

• a good that is traded in exchange for another good rather than money

• a good that can be acquired with zero opportunity cost

Which of the following is not a social science?

• archaeology

• history

• economics

• chemistry

Resource allocation is related to the basic economic question(s) of

• what to produce

• how to produce

• how much to produce

• all of the above