Ch1 - Consumer Math

What is the study of the decisions that go into making, distributing, and using goods and services called?

• Opportunity cost

• Economics

• Marginal costs

• Supply

What term describes what you give up to get something else?

• Scarcity

• Marginal costs

• Opportunity cost

• Supply

What is the cost of obtaining one more of an item called?

• Marginal costs

• Opportunity cost

• Scarcity

• Supply

Which of the following requires people to decide which goods and services to use or not use due to limited resources and unlimited wants?

• Supply

• Scarcity

• Opportunity cost

• Marginal costs

What are the resources needed to produce goods and services called?

• Factors of Production

• Supply

• Marginal costs

• Opportunity cost

Which of the following is NOT one of the four factors of production?

• Land

• Capital

• Labor

• Supply

What type of economy answers all three economic questions by customs and tradition?

• Command economy

• Market economy

• Traditional economy

• Mixed economy

In which type of economy does a central authority control all economic decisions?

• Market economy

• Traditional economy

• Command economy

• Mixed economy

In a market economy, what determines prices and wages?

• Central authority

• Customs and tradition

• Supply and demand

• Government policies

Which country is given as an example of a nation with a command economy?

• United States

• China

• Germany

• India