Economics Quiz Unit 1 Standards 1a - 3a

What does scarcity refer to in economics?

• A temporary shortage of goods

• Unlimited wants exceeding limited resources

• A government regulation

• A surplus of products

Which of the following is NOT a strategy for allocating scarce resources?

• Price

• First-Come-First-Served

• Random Selection

• Inflation

What is an example of a natural resource?

• Machinery

• Labor

• Water

• Knowledge

If a student chooses to attend college instead of working, what is the opportunity cost?

• The tuition fees paid

• The income they would have earned from working

• The experiences gained in college

• The time spent studying

Which of the following is an example of physical capital?

• A worker's skills

• A factory building

• An employee's education

• A company's reputation

Rational decision-making involves comparing:

• Total costs and total benefits

• Marginal benefits and marginal costs

• Short-term and long-term goals

• Primary and secondary needs

Which allocation method uses a lottery system?

• Price

• Contests

• First-Come-First-Served

• Random selection

What is the role of entrepreneurship in economic production?

• To provide labor

• To manage natural resources

• To innovate and combine resources

• To regulate the market

When making a decision, if the marginal cost exceeds the marginal benefit, what should a rational decision-maker do?

• Proceed with the decision

• Reassess the decision

• Increase the marginal cost

• Ignore the costs

Which method of resource allocation is based on competition?

• Sharing

• Contests

• Authority

• Force