Quiz 1: Fundamentals Check Point

The value of the next best alternative that is given up when making a choice is called?

• Scarcity

• Opportunity Cost

• Comparative Advantage

• Supply

The condition that results because people have limited resources but unlimited wants is known as?

• Scarcity

• Abundance

• Surplus

• Deficit

Which of the following is NOT one of the four factors of production?

• Technology

• Land

• Labor

• Capital

What is the term for the study of how people choose to use their limited resources?

• Economics

• Geography

• History

• Biology

Which of the following is NOT an example of capital?

• Pencils

• Couches

• Tutoring

• Monster Energy Drinks

Which of the following most accurately describes utility in economics?

• The value of the next best alternative

• The total hours of labor into a product

• The amount of satisfaction gained by a good or service

• The item given up when making a decision

In economics, societies must ask which of the following questions?

• What to produce?

• How to control consumers?

• Where to produce?

• When to produce?

Limited resources force people to make choice. This is referred to as...

• Costs vs. Benefits

• Scarcity forces trade-off

• Future consequences count

• Thinking at the margin

Something that motivates someone to do or not do something is called..

• utility

• factor of production

• consequences

• incentives

How does trade benefit us?

• Trade decreases our manufacturing.

• Trade reduces the number of available products.
• Trade has no impact on economic growth.
• Trade allows us to focus on what we do well and get products based on what others do well.