Unit 1 Economics Final Exam Review

What is the definition of scarcity?

• Unlimited human wants vs. a limited supply of resources.

• The ability to work, think, and create.

• Tangible items you can see, touch, and feel.

• Man-made assets that aid in production.

What is the implication of scarcity?

• A) Every choice involves trade-offs because resources are finite.

• B) Goods are always available.

• C) Services are tangible.

• D) Capital goods are natural resources.

Fill in the blank: Human resources are efforts (both physical and mental) provided by _____

• people

• machines

• animals

• computers

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

• Your ability to work, think, and create.

• Machinery.

• Solar energy.

• A car.

What are natural resources?

• "Gifts of nature" that can be used for production.

• Man-made assets that aid in production.

• Intangible activities or benefits provided.

• Tangible items you can see, touch, and feel.

Which of the following is a renewable resource?

• Solar energy

• Fossil fuels

• Machinery

• Haircuts

Exhaustible resources are limited and can be depleted.

• True

• False

What is the definition of capital goods?

• Man-made assets that aid in production.

• Tangible items you can see, touch, and feel.

• Efforts provided by people.

• Intangible activities or benefits provided.

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

• Machinery

• Haircuts

• Solar energy

• A book

Goods are tangible items you can see, touch, and feel.

• True

• False