Economics Unit 1 Lesson 2 Vocab Activity

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

• Financial capital

• Factors of production

• Economic efficiency

• Opportunity cost

Which of the following is an example of a nonrenewable resource?

• Solar energy

• Wind energy

• Coal

• Water

What does the law of diminishing marginal utility state?

• As more of a good is consumed, the total utility increases at an increasing rate.

• As more of a good is consumed, the marginal utility decreases.

• As more of a good is consumed, the marginal utility increases.

• As more of a good is consumed, the total utility decreases.

Which of the following best describes human capital?

• Machinery and equipment used in production

• Financial resources available for investment

• Skills and knowledge of workers

• Natural resources like land and minerals

Which of the following is considered a perpetual resource?

• Oil

• Coal

• Sunlight

• Timber

What is the primary role of an entrepreneur in the economy?

• To provide labor for production

• To organize and manage resources to create goods and services

• To supply natural resources

• To consume goods and services

In the production possibilities curve, what does a point inside the curve represent?

• Maximum efficiency

• Underutilization of resources

• Unattainable production level

• Economic growth

What is the term for the satisfaction or benefit derived from consuming a good or service?

• Utility

• Productivity

• Input

• Output

Which of the following is an example of a capital good?

• A loaf of bread

• A factory machine

• A plot of land

• A worker's salary

What is the production equation used to represent?

• The relationship between input and output

• The cost of production

• The profit from production

• The utility of goods