Unit 1 Test

Something that makes you act/behave in a particular way is called a(an)

• Reason

• Motive

• Incentive

• Choice

If a person does something that they do best in a production process, they are an example of

• Division of Labor

• Specialization

• Machinery

• Land

An entrepreneur uses which productive resources when creating a good or service?

• Scarcity, incentives, interdependence

• Monetary and fiscal policies

• Land, labor, capital

• Technology, education, growth

If you have $20 and you are trying to decide between going to a concert or going to a game and both are on the same night you will have to make a choice. Assuming that you choose to go to the concert, what is your opportunity cost?

• The game

• The $20

• $20 and the game

• nothing

Economics is the study of what?

• Money

• economy

• choices

• politics

The basic problem of economics is

• Money

• Economy

• Scarcity

• Allocation

A good that is used to produce other consumer goods and services, as well as capital goods, is a(an)

• Capital good

• Consumer good

• Land

• Entrepreneur

A machine used to weld doors on cars would be considered what?

• Land

• Labor

• Capital

• Entrepreneurship

Getting the most outputs from the fewest inputs is called

• Productivity

• Specialization

• Division of labor

• Efficiency

In economics, rational decisions occur when

• Command economies answer the three basic economic questions

• Marginal benefits equal or exceed marginal costs

• A budget is used for spending and saving decisions

• Suppliers lower their prices to increase demand