Our Economic Choices

Which of the following is NOT a factor of production?

• Land

• Capital

• Wealth

• Labor

What does opportunity cost refer to?

• The total cost of all options

• The price of a good

• The cost of production

• The value of the next best alternative foregone

Which factor of production includes natural resources?

• 
  Land

• Labor

• Capital

• 
  Entrepreneurs

What is the role of entrepreneurs in the economy?

• To manage resources

• To take risks and innovate

• To provide labor

• To regulate prices

What happens when one of the factors of production is missing?

• Production costs decrease

• Production continues as usual

• Production may halt or be limited

• Production becomes more efficient

What is a production possibilities curve?

• A chart of consumer preferences

• A model of labor supply

• A list of production costs

• A graph showing the maximum output of two goods

Which of the following best describes trade-offs?

• The benefits of a decision

• The alternatives available

• The sacrifices made when choosing one option over another

• The total cost of production

How can scarcity influence the value of medicine?

• It decreases the demand

• It can increase the price due to limited availability

• It increases the supply

• It has no effect on value

Which of the following is an example of capital?

• A piece of land

• A farmer

• 
  A natural resource

• A factory

What is the significance of limited resources in decision-making?

• They increase production

• They force individuals to make choices

• They have no impact

• They simplify choices