Econ Unit 1

While the wants and needs of consumers are unlimited, productive resources are limited, forcing consumers and producers to make choices. This concept is known as

• borrowing

• surplus

• scarcity

• budgeting

If a nation decides to invest in defense as oppose to domestic issues, domestic stability becomes a

• Marginal benefit

• International competition

• Monetary incentives

• Opportunity cost

In a market economy like the United States, the government's role is to

• Regulate industry

• Control industry

• Focus on imported goods to sustain the economy

• Avoid specialization

Scarcity occurs when

• There aren't enough resources needed to provide for the demand of goods and services

• There is a surplus of resources with which to provide for the demand of goods and services.

• There is efficient production possibility curve

• There is a lack of diversity in producers in a given market

Entrepreneurs are motivated by which of the following?

• credit score

• prices

• gdp

• profit

What are the factors of production?

• Land, labor, capital, entrepreneurship

• Land, needs, wants, capitals

• Rent, wages, interest, profit

• Land, labor, scarcity, entrepreneurship

If a bakery makes cupcakes, which of the following would be capital?

• The flour

• The retailer

• The oven

• The worker

Human capital

• Innovations within an industry

• Natural resources

• The skills and motivation of producers

• Production factors

Macroeconomics

• The impact of implementing government policy

• The study of the economy as a whole

• Small economic units such as an individual or firm

• A study of international trade and finance

Microeconomics

• The economic impact of fiscal policy

• The big picture of the economy

• International trade

• Small units such as a business or individual