Unit 1 Chapter 1 Review

When marginal benefit is greater than the cost of a particular good/service, the ___________ should be obtained.

• opportunity cost

• marginal benefit

• marginal cost

• factors of production

If Dr. Hollar had three options for where to get lunch this weekend and she ranked them (1) Jersey Mikes, (2) Chipotle, and (3) Chick-fil-A, what is her opportunity cost of going to Jersey Mike's?

• Jersey Mikes

• Chipotle

• Chick Fil A

• Chipotle and Chick Fil A

When conducting cost-benefit analysis, individuals consider and ask themselves...

• What is the durability of the good/service?

• What is the cost of the good/service?

• Will the good/service lead to other expenses?

• All three options.

Which of the following accurately describes a reason for some goods/services having a higher value than others?

• Personal preferences for some goods/services over others

• Cultural preferences for some goods/services over others

• The scarcity of a good/service

• Whether the goods/services are wants or needs

The capacity of a good/service to be useful is known as (a)   .

This condition results from a society not having enough resources to produce everything that people want.

(a)  

Tools, equipment, and machinery would fall under which of the Four Factors of Production?

• Land

• Labor

• Capital

• Entrepreneurship

Water, natural gas, and the soil on which a structure is built would all fall under which of the Four Factors of Production?

• Land

• Labor

• Capital

• Entrepreneurship

• When conducting marginal analysis, if you determine the marginal benefit of a desire good is (a)   the marginal cost, the desired good is not worth the cost and should not be obtained.

_____ are things that we buy or use, such as a television or car, while _____ are jobs and activities that are provided by people in an economy, such as an accounting or nursing.

• Capital; entrepreneurs

• Labor; goods

• Value; labor

• Goods; services