Econ Chapter 1 Test

Which is an example of scarcity?

• A fan cannot go to a concert because there are not enough tickets.
• A fan goes to a concert because there are enough tickets for everyone.
• A fan cannot go to a concert because he has to do homework instead.
• A fan goes to a concert instead of doing homework.

Food is an example of

• a durable consumer good.
• a nondurable consumer good.
• a durable capital good.
• a nondurable capital good.

A lawyer does work that could be classified as

• a consumer good.
• a transferable good.
• a service.
• a basic need.

What two economic factors determine the value of something?

• Durability and service
• Capital and scarcity
• Scarcity and utility
• Need and want

A car is an example of a

• durable good.
• nondurable good.
• capital good.
• mechanical good.

Which answer explains the phrase "There Is No Such Thing As A Free Lunch"?

• A business that offers a deal will pass on the cost in other ways.
• Businesses rarely offer free items to customers.
• A business always expects its customers to pay for products and services.
• Businesses often ask customers to pay for others' lunches

What questions do all societies have to answer economically?

• What, how, and for whom to predict economic outcomes
• How to measure their gross domestic product
• Why and how to increase scarcity
• What, how, and for whom to produce

A good that is intended to last more than 3 years with regular use

• non-durable good
• super good
• consumer good
• durable good

Which of the following statements best describes the purpose of the production possibilities curve?

• It predicts the future production of a nation.
• It identifies trends in production.
• It shows which products are most profitable.
• It identifies all possible combinations of goods and services an economy can produce.

Which of the following descriptions best explains the meaning of opportunity cost?

• the initial cost of starting a new business
• the cost of business failure
• the cost of choosing one alternative over another

• the risk associated with producing a new item