Economics Unit 1 Test

What is the term for the study of how individuals and societies satisfy their unlimited wants with limited resources?

• Economics
• Scarcity
• Law of increasing opportunity cost
• Pig Principle

A person who buys goods or services are called __?

• Consumer
• Producer

Which of the following best describes wants?

• unlimited and ever changing
• limited and ever changing
• unlimited and never changing
• limited and never changing

Generally speaking, people prefer "n+1" units of a good to "n" units of the same good. This statement is known as....

• Cash cow concept
• law of increasing opportunity cost
• pig principle
• free lunch

What type of analysis examines the positives and negatives of a choice?

• Cost-benefit anaylsis
• Opportunity cost
• law of increasing opportunity cost
• Scarcity

What is the term for physical objects like food, clothing, and furniture that can be produced?

• Services
• Goods
• Wants
• Consumers

What is the term for the work that one person does for another for payment?

• Service
• Good
• Want
• Consumer

Which of the following would be an example of macroeconomics?

• Coal miners go on strike
• Shipbuilder wins a navy contract
• National unemployment rates
• Gas prices drive up 25 cents

What is the term for when you use resources to produce the maximum amount of goods and services?

• Incentive
• Underutilization
• Efficiency
• Marginal Cost

Who is known as the "Father of Economics" that wrote the book "Wealth of Nations"?

• Karl Marx
• Adam Smith
• Alexander Hamilton
• Donald Trump