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Chapter 1 Sec 1-2 quiz

Total questions: 17

Worksheet time: 11mins

Name
Class
Date
1.

Because we face scarcity, we must make _____________.

a)

studies

b)

money

c)

profit

d)

choices

2.

Our inability to satisfy all our wants is called ___________.

a)

profit

b)

scarcity

c)

surplus

d)

wages

3.

A(n) __________________ is a reward that encourages an action or a penalty that discourages an action.

a)

fine

b)

FOPs

c)

incentive

d)

human capital

4.

The work time and work effort that people devote to producing goods and services is __________.

a)

labor

b)

land

c)

capital

d)

rent

5.

The tools, instruments, machines, buildings, and other constructions that businesses use to produce goods and services are _____________.

a)

land

b)

capital

c)

entrepreneurship

d)

labor

6.

The human resource that organizes land, labor, and capital is _________________.

a)

land

b)

labor

c)

capital

d)

entrepreneurship

7.

You make choices that are in your ___________—choices that you think are best for you.

a)

social-interest

b)

studies

c)

efficiency

d)

self-interest

8.

____________ is fairness, but economists have a variety of views about what is fair.

a)

efficiency

b)

profit

c)

risk

d)

equity

9.
Which of the following best describes an entrepreneur?
a)
a person who works as an office clerk at a major corporation
b)
a person who combines the factors of production to produce innovative products
c)
a special type of capital 
d)
wealthy individuals who provide savings that stimulates the economy
10.

The benefit you give up by choosing to do one thing instead of another

a)

Opportunity Cost

b)

Profit

c)

Scarcity

d)

Producers

11.

A quarterback for a NFL team, would be considered which one of the 4 economic resources?

a)

Land

b)

Labor

c)

Capital

d)

Entrepreneurship

12.
What is a need?
a)
Nothing
b)
Something you have to have to live
c)
Something you would like to have
d)
Ice cream
13.
What is a want?
a)
A person
b)
Something you would like to have but don't need to live
c)
Purple
d)
Something you need to live
14.
Utility is the
a)
benefit or satisfaction that a person gets from the consumption of a good or service
b)
measure of how useful a resource is in the production process
c)
measure of productivity associated with a good or service
d)
economic term for consumption possibilities
15.
What are the three economic questions?
a)
What to produce? How to produce? For whom to produce?
b)
Who to produce? Why you produce? Like to produce?
c)
Why to produce? Tell who to produce? Things to produce?
16.
The worth of an item in dollars 
a)
Trade Offs
b)
Opportunity Cost
c)
Value
d)
Utility
17.
Economics is the study of how
a)
gov't allocates scare resources to satisfy people's unlimited wants.
b)
gov't supplies money to businesses to produce goods & services.
c)
people use their scarce resources to satisfy their unlimited wants.
d)
businesses supply unlimited goods & services with limited resources.