Scarcity exists because people have ___ and resources are ___.

• limited wants; unlimited

• unlimited wants; limited

• limited wants; limited

• unlimited wants; unlimited

You have Saturday free: work a shift, study for a test, or attend a game. You choose to study. Your opportunity cost is:

• the money you earn working

• the game you didn’t attend

• the next best alternative you gave up

• nothing, because studying is free

Which is an example of land (natural resource)?

• A delivery van

• A manager

• An oil field

• A spreadsheet

Which is an example of physical capital?

• A welding robot in a factory

• The welder’s skills

• The CEO

• A paycheck

The person who organizes resources and takes risks to start a business is the:

• laborer

• lender

• entrepreneur

• accountant

A student considers working one more hour. The student should do it if the marginal benefit ___ the marginal cost.

• equals

• is less than

• is greater than

• is unrelated to

Choosing a new car loan with a low monthly payment but longer term mainly involves which trade-off?

• Lower total interest paid

• Higher total interest paid over time

• No impact on interest

• No impact on budget

Your employer offers a 5% 401(k) match. This is best described as a(n):

• sunk cost

• disincentive to save

• monetary incentive to save

• nonmonetary incentive

You already paid $30 for a concert ticket you can’t resell. Deciding whether to go should be based on:

• the $30 sunk cost

• marginal benefits vs. marginal costs of going now

• the artist’s last album

• how many friends are going

A nonmonetary incentive example is:

• a cash bonus

• free pizza for volunteers

• an interest payment

• overtime pay