UNIT 1 ECONOMICS EXAM

The situation in which unlimited wants exceed the limited resources available to fulfill those wants.

• Market 
• Tradeoff
• Scarcity 
• Equity 

What is Opportunity Cost?

• the opportunity one has to give up in order to gain something else

• Land, labor, capital, and entrepreneurs

• a graph that shows how much an economy can produce between two goods

• how much money something is

An Incentive is:

• the option to select or make a decision when faced with two or more possibilities

• a circumstance that contributes to a result or outcome

• a benefit or cost that influences a person's decision

• a conclusion or resolution reached after consideration

____ is the study of how individuals, businesses and governments organize their limited resources to get the products and services they want.

• History

• Government

• Economics

• Sociology

The idea that we have unlimited wants but limited resources is called...

• entrepreneurship

• investments

• economics

• scarcity

Business owners who organize the factors of production, invest resources in ventures and are willing to take risks in order to make profit are called _____.

• entrepreneurs

• economists

• teachers

• businessmen

_______ includes the tools, equipment and factories used in production.

• labor

• entrepreneurship

• capital

• goods

Which factor of production would be considered land

• Coal

• Factory

• Money

• Tractor

Which of the following is true about scarcity?

• Scarcity affects all societies.

• Scarcity exists only in poor countries.

• Scarce goods lead to lower prices.

• Scarcity of resources can be eliminated using sound economic policies.

The fundamental problem of Economics: Unlimited wants, limited resources.

• Opportunity Cost

• Trade Offs

• Scarcity

• Marginal Benefit