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POB 5.01 #1

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

A farmer has 1,000 acres. He decides to plant apple trees on 800 acres and raise cows on the remaining 200 acres. If he wanted to raise more cows, he would have to reduce the amount of land allotted to growing apples. This is an example of:

a)

utility

b)

opportunity cost

2.

Which occurs when the supply of individuals who are able and willing to work diminishes?

a)

Human resources become limited.

b)

Capital goods become unlimited.

3.

Which group of words best describes wants?

a)

limited, changing, and compensating

b)

unlimited, changing, and competing

4.

Which is an example of an economic service?

a)

car stereo

b)

concert ticket

5.

A local dry cleaner that also launders and presses shirts is selling:

a)

specialty goods

b)

consumer services

6.

The desire for which item(s) would be considered a noneconomic want?

a)

a walk

b)

nutritious food

7.

Adrian and Bailey own a salon. Adrian is a nail technician and Bailey is a cosmetologist. Adrian gives Bailey a pedicure. Bailey gives Adrian a haircut. They do not pay money for the services provided. What does this demonstrate?

a)

exchange

b)

scarcity

8.

Which is a natural resource that can be renewed through people's efforts?

a)

Trees

b)

Water

9.

The process of deciding which goods and services will be purchased or provided so that the most satisfaction can be obtained is called economizing.

a)

True

b)

False

10.

Scarcity is

a)

Unlimited wants with limited resources

b)

Limited wants with unlimited resources