Fundamentals of Economics Quiz

Which of the following is NOT a focus of economics?

• Making choices

• Scarce resources

• Satisfying needs and wants

• Studying celestial bodies

Which of the following best defines economics?

• The study of human behavior

• The study of how people make choices with scarce resources

• The study of cultural development

• The study of historical events

Which of the following is NOT a principle of economics?

• People choose

• People's choices involve costs

• People do not respond to incentives

• People gain when they trade voluntarily

What do economists reason about optimal decisions?

• They are made without considering benefits

• They are made at the margin

• They are made based on past experiences

• They are made by following others

What is the definition of scarcity?

• Tension between unlimited wants and limited (scarce) resources

• Situation in which a good or service is unavailable

• Excess supply of goods

• Unlimited resources for limited wants

Entrepreneurs are willing to take risks primarily to:

• Avoid competition

• Make a profit

• Work less

• Follow trends

Which of the following is an example of physical capital?

• A teacher

• A factory machine

• A tree

• A waiter

Which factor of production is directly associated with human effort?

• Land

• Labor

• Capital

• Technology

Which factor of production is essential for tasks like teaching and mechanical work?

• Land

• Labor

• Capital

• Technology

What does the factor of production 'Land' NOT include?

• Real estate

• Mined minerals

• Native plants and animals

• Human labor