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WorksheetsEcon 1.1-1.3
Total questions: 18
Worksheet time: 9mins
Limited quantities of resources to meet unlimited wants is a
shortage
scarcity
want
need
Any human-made resource that is used to create other goods and/or services is
a service
an entrepreneur
capital
labor
Natural resources that are used to make goods and services are considered
equipment
money
labor
land
Which of the following is NOT a factor of production?
the land required for a hog farm
the training required to repair an airplane engine
the teacher required to teach an economics class
the amount of money required to buy a car
Why are individuals, companies, and governments required to constantly make choices about how to best utilize resources?
There is always a shortage of resources
There is always a scarcity of resources
They all have more needs than wants
They all have more wants than needs
Why are scarcity and choice basic to the study of economics?
because there is not an endless supply of all resources
because there is an endless supply of all resources
because most people have limited wants and needs
because they are important factors of production
Factors of production are
all the human-made goods that are used to produce other goods and services; tools and buildings.
land, labor, and capital; the three groups of resources that are used to make all goods and services.
the skills and knowledge gained by a worker through education and experience.
natural resources that are used to make goods and services.
Which of the following is a guns or butter decision?
A nation shifts money from building railroads to building highways.
A company decides to build armored tanks instead of bombs.
A company chooses to make more cheese and less butter.
A nation decides to produce fewer fighter jets and more bridges.
What are you doing when you make a decision at the margin?
taking an all or nothing approach to a problem
reviewing several options of how to use one additional unit of a resource
examining two primary options and their trade-offs before making a decision
refusing to make a choice
How are trade-offs and opportunity costs different?
The opportunity cost is the most desirable trade-off.
A trade-off is the most expensive opportunity cost.
A trade-off can be put on a decision-making grid, but an opportunity cost cannot.
It's more important to be aware of the trade-off when deciding something.
An example of an opportunity cost would be
not being able to afford a family trip because the family buys a computer.
buying a movie ticket.
the price of gasoline for a family trip.
buying a computer to help get better grades in school.
Efficiency is
using the maximum number of resources to produce goods and services.
using resources in such a way as to maximize the production of goods and services.
finding the most expensive, time-consuming way to produce a good or service.
replacing old ways of producing goods and services with new tools and methods.
On a production possibilities graph, a point of underutilization would appear
above or to the right of the production possibilities frontier.
directly on the production possibilities frontier.
just beyond the future production possibilities frontier.
below or to the left of the production possibilities frontier.
4. What is the name of the law that states that as we shift factors of production from making one good or service to another, the cost of producing the second item increases?
the law of efficient production
the law of effective production
the law of decreasing costs
the law of increasing costs
A production possibilities curve is a graph that shows
alternative ways to use an economy's resources.
a company's projected product sales.
how a country will budge its resources.
how a company will pay its expenses.
Using the factors of production to make one product always means that
a nation can make more money.
a company may experience a shortage of materials.
fewer resources are left to make something else.
it is possible to make too many of that product.
A country's production possibilities depend on
its technological level and its available resources.
its natural resources.
its human capital and its physical capital.
all of the above.
The production possibilities frontier is
the line on a production possibilities graph that shows the maximum possible output.
the points on a production possibilities graph that show an underutilization of resources.
the points on a production possibilities graph that show the total revenue of an economy.
the line on a production possibilities graph that shows how production increases as new technologies are introduced.
