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Unit 1 Test 1 Review

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

What is scarcity?

a)

When there is a limited amount of resources

b)

When there is an unlimited amount of resources

c)

When there is enough for everyone

d)

A resource we can never run out of

2.

What is an example of a scarce resource?

a)

Air

b)

Garbage

c)

Oil

d)

Outer Space

3.

True or False: Every choice has a cost

a)

True

b)

False

4.

What is opportunity cost?

a)

This is the choice you made

b)

This is an alternative you never wanted

c)

This is what you give up when making a choice

d)

This is what you wish you had instead

5.

Which is not a factor of production?

a)

Land

b)

Labor

c)

Capital

d)

Money

6.

Anything that is found on, above, or below the Earth and used to create a product is an example of what factor of production?

a)

Land

b)

Labor

c)

Capital

7.

Anything that is done by humans to create a product is an example of what type of factor of production?

a)

Land

b)

Labor

c)

Capital

8.

Anything that is done by machine and tools to create a product is an example of what type of factor of production?

a)

Land

b)

Labor

c)

Capital

9.

This graph shows the amount of gun and butter that can be produced. At what point is the country producing mostly butter?

a)

Point A

b)

Point B

c)

Point C

d)

Point D

10.

This graph shows the amount of gun and butter that can be produced. What is the opportunity cost from moving to Point B to Point C?

a)

Giving up some butter

b)

Giving up nothing

c)

Giving up some guns

d)

Point D

11.

This graph shows the amount of gun and butter that can be produced. At what point is the country not producing up to potential?

a)

Point A

b)

Point B

c)

Point C

d)

Point D

12.

This graph shows the amount of gun and butter that can be produced. What point is impossible to produce at?

a)

Point A

b)

Point B

c)

Point C

d)

Point X