Factors of Production and Opportunity Cost

Which of these is not a factor of production

• Land
• Labor
• Money
• Capital

Which is NOT a question all societies have to answer due to scarce resources?

• Who is buying and producing the products?

• Where are the products being made?

• How are the products being made?

• What product is being made?

True or False: In order to be considered labor, you need to be paid

• True

• False

Jason's Mom told him to go to the store and buy 4 items, Milk, Bread, Butter, Cheese. She gave him $15. When James went to purchase the goods, he realized he did not have enough money for all 4, so he got rid of the Milk. Which item was his opportunity cost?

• Milk
• Cheese
• Butter
• Bread

Jack wants to start a landscaping business, what physical capital would he require?

• High school diploma and a college degree

• Ovens, Fridges, Fryers

• Razors, Clippers, Blow dryer

• Lawnmower, Leaf blower, Trash bags

In the 1950's and 1960's the United States poured millions of dollars in NASA in an effort to recruit more engineers into the workforce to be the first country to the moon. This is an example of the United States trying to increase what?

• Underutilization

• Physical Capital

• Efficiency

• Human Capital

If an Coffee shop decided to start serving food on the menu instead of just coffee, the law of increasing costs tells us that what would happen to the prices?

• The prices would decrease

• The prices would increase

When an economy or business does not use the maximum amount of resources it is called?

• 
  Scarcity

• Efficiency

• Underutilization

• Overutilization

When Emily gets up in the morning she stares at her alarm clock, she usually sits there and debates if she should get up and start her day or if she should hit snooze and go back to sleep. This is an example of Emily doing what

• Thinking on the margin

• Opportunity Costs

• Trade-offs

• Scarcity

Why do all societies have to make decisions about how resources will be used?

• People are greedy

• Resources are too expensive for most people

• Resources are scarce

• Because there is a huge gap between the rich and poor