Are You Satisfied LAP Test

1. Into what two categories can wants be divided?

• 1. Unlimited and limited

• 1. Unlimited and economics

• 1. Economic and noneconomic

• 1. Unlimited and noneconomic

1. Seeing a movie at a theater would be considered a(n) __________ want.

• 1. economic

• 1. unlimited

• 1. limited

• 1. noneconomic

1. Friendship would be considered a(n) __________ want.

• 1. economic

• 1. limited

• 1. unlimited

• 1. noneconomic

1. Which of the following groups of words best describes wants:

• 1. Limited, changing, and compensating

• 1. Unlimited, changing, and competing

• 1. Limited, unchanging, and competing

• 1. Unlimited, unchanging, and compensating

1. Water and air are examples of __________ resources, while people are considered to be __________ resources.

• 1. natural; human

• 1. physical; mental

• 1. capital; human

• 1. mental; natural

1. In economics, capital goods include

• 1. labor and management.

• 1. mental and physical work.

• 1. buildings and equipment.

• 1. trees and water.

1. Why are resources considered limited?

• 1. Everyone has them, and they change.

• 1. There are not enough available for everyone to have as much of them as desired.

• 1. There are so many that people must decide which ones to choose at any one time.

• 1. Entrepreneurs do not invest enough of them.

1. A gap between unlimited wants and limited resources creates

• 1. economics.

• 1. resources.

• 1. wants.

• 1. scarcity.

1. Michelle is trying to decide which goods and services to purchase so that she can get maximum satisfaction. Michelle is

• 1. creating scarcity.

• 1. economizing.

• 1. a producer.

• 1. increasing distribution.

1. John only had $40 to spend and couldn’t decide whether to buy a new pair of jeans or to go to an amusement park. He finally decided to spend his money on the amusement park. What was the opportunity cost of his decision?

• 1. New pair of jeans

• 1. $40

• 1. Trip to amusement park

• 1. No opportunity cost was involved.