Foundation of Economics Review

Shane is starting a small farm. Which of the following is an example of a factor of production he will need?

• Land

• Trade-offs

• Scarcity

• Need

What is the term for the cost of the next best alternative when a choice is made?

• Capital

• Opportunity cost

• Entrepreneurship

• Consumer goods

Which of the following is considered a type of good?

• Labor

• Free

• Scarcity

• Services

What concept involves making decisions based on the benefits and costs of alternatives?

• Trade-offs

• Capital goods

• Need

• Labor

Narges is shopping for different types of goods. She needs to decide which of the following is NOT a type of good?

• Consumer

• Capital

• Free

• Scarcity

What is the term for resources used to produce goods and services?

• Capital

• Need

• Scarcity

• Trade-offs

Which of the following is a concept related to limited resources and unlimited wants?

• Scarcity

• Entrepreneurship

• Services

• Free goods

What is the role of entrepreneurship in economics?

• To provide labor

• To manage and organize resources

• To consume goods

• To create scarcity

Which of the following is an example of a service?

• Capital goods

• Labor

• Teaching

• Free goods

What is the economic model that shows the trade-offs between two goods?

• Production possibilities frontier

• Opportunity cost

• Scarcity

• Consumer goods