used to make or obtain a need or want.

A production possibilities curve illustrates all the

combinations of two goods/services that can be made.

A company might improve efficiency by

introducing a division of labor.

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ECONOMICS CHAPTER 1

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A review for Chapter 1 Economics 2016.

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Questions 15

Answers

1
A resource is
the result of choices made by business firms.
the result of scarcity in the economic system.
used to make or obtain a need or want.
a physical object that can be purchased.
2
A production possibilities curve illustrates all the
choices a person can make between items.
economic choices a society can make.
technological changes that help to increase production.
combinations of two goods/services that can be made.
3
The process of developing a new combination of the other factors of production is called
technology.
allocation
entrepreneurship
productivity.
4
Microeconomics is the study of
large corporations.
individuals.
households.
all of the above.
5
When a car is used to deliver pizza, it is a
finished product.
capital good.
technological resource.
consumer good.
6
In Virginia in the early 1600s, tobacco was used as a form of
near money.
commodity money.
representative money.
fiat money.
7
If the smallest unit of U.S. money was the $100 bill, which characteristic would it not meet.
durability.
divisibility.
portability.
acceptability.
8
If money can be carried from place to place and transferred person to person, it is
acceptable.
durable.
divisible.
portable.
9
Consumers decide what to
buy
provide
save
sell
10
Paper money has the words "This note is legal tender for all debts..." It is
commodity money.
fiat money.
representative money.
standard money.
11
The purpose of money is to serve as a
measure of value.
all of the above.
store of value.
a medium of exchange.
12
A product's usefulness to a person is called its
utility.
efficiency.
price.
availability.
13
The means of exchange that relies on bargaing is
money.
utility
barter.
credit.
14
The ability to fulfill all one's needs without outside assistance is called
self-sufficiency.
opportunity-cost.
interdependence.
utility.
15
A company might improve efficiency by
introducing a division of labor.
specializing in one kind of product.
assigning workers more tasks.
replacing machines with workers.

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