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Econ 1.2

Total questions: 15

Worksheet time: 18mins

Name
Class
Date
1.

computer used to produce magazine articles

a)

land

b)

capital

c)

labor

d)

entrepreneurship

2.

the south's rainy season

a)

land

b)

capital

c)

labor

d)

entrepreneurship

3.

a third-grade teacher

a)

land

b)

capital

c)

labor

d)

entrepreneurship

4.

the manager of a car repair shop

a)

land

b)

capital

c)

labor

d)

entrepreneurship

5.

creator of a new smartphone app

a)

land

b)

capital

c)

labor

d)

entrepreneurship

6.

Which of the factors of production involves risk taking and combining resources to create a good or service

a)

land

b)

labor

c)

capital

d)

entrepreneurs

7.

Opportunity Costs refers to

a)

the dollar amount attached to a good or service

b)

the value of the next best alternative

c)

the cost of not expanding production

d)

the cost of labor when production is expanded or changed

8.

When deciding how to use resources, you need to evaluate the cost and benefit of each choice to decide which meets our criteria. These are called

a)

trade offs

b)

opportunities

c)

resource frontier

d)

priorities

9.

Resources are powerful because

a)

they have more rights than corporations

b)

they help decide a business's opportunity costs

c)

they drive decisions about what to produce

d)

their interests force producers to behave ethically

10.

Consumers are expected to read the full information about a product before making a purchase. This is an example of a consumers' ______________.

a)

opportunities

b)

rights

c)

habits

d)

responsibilities

11.

What is the opportunity cost of producing 100 new units of clothing, after only producing food.

a)

25 units of food

b)

50 of clothing

c)

75 units of food

d)

100 of clothing

12.

What is the opportunity cost of producing 150 units of clothing instead of 100 units of clothing.

a)

25 units of food

b)

50 units of food

c)

75 units of food

d)

100 units of food

13.

What is gained when producing 100 units of food and your manager wants 50 less units?

a)

50 units of food

b)

150 units of clothes

c)

75 units of food

d)

100 units of clothes

14.

The owner of the company you work wants to produce 150 units of clothes and 75 units of food. What would you tell them?

a)

That would be under utilizing of our resources

b)

No problem boss, whatever you say.

c)

Sorry but we do not have enough resources to produce those levels

d)

Let me talk to Steve and Linda in human resources first.

15.

What can be said about point E on the image?

a)

You would not be using the resources available to the full capacity

b)

It is the best production possibility for safety purposes

c)

We do not have enough resources to produce those levels

d)

Producing Food 7 Clothes at point E is fun