Module 1 Test

an estimation of revenue and expenses over a specified period of time.

• budget constraint
• demand
• diminishing marginal utility
• budget

all the combinations of goods and services that a consumer may purchase given current prices within the limits of that person's income.

• demand
• budget constraint
• budget
• marginal utility

amount of desire for a particular good or service.

• budget
• diminishing marginal utility
• budget constraint
• demand

the process of identifying the benefits and costs of different alternatives by examining the effects caused by a very small change in the output or input of each alternative.

• budget
• marginal analysis
• diminishing marginal utility
• marginal utility
• budget constraint

Which of the following buys goods for personal use?

• consumer
• producer
• client

Into what four categories do economist divide factors of production?

• resources, labor, capital, and entrepreneurship
• land, labor, capital, and entrepreneurship
• resources, labor, money, and entrepreneurship

Which is not considered a need?

• food
• clothing
• television

When economists refer to scarcity, they mean

• Population growth will lead to massive shortages of goods in the future.
• Resources, especially land resources, are finite in quantity.
• Human desires for goods are greater than the available resources.

Which of the following is a land resource?

• Implements used to work the land, like plows.
• Minerals inside the earth.
• Minerals made into items like rings and bracelets.
• All of these

What is an example of Capital in Economics?

• Entrepreneur
• Factory/warehouse
• Little Rock