Economics Basics

Question 1

Which of the following is true?

Accepted Answer

All opportunity costs are trade offs

Question 2

Bill Gates founding Microsoft is an example of which factor of production?

Accepted Answer

Entrepreneurship

Question 3

What type of cost is the next best thing you give up when you make an economic decision?

Accepted Answer

Opportunity Cost

Question 4

The chocolate used to produce a hershey's bar is which of the following factors of production?

Accepted Answer

Land

Question 5

20 tons of corn & 30 tons of wheat or 25 of corn & 20 of wheat. Oppor. cost of 25 tons of corn?

Accepted Answer

10 tons of wheat

Question 6

Economics is defined as

Accepted Answer

The study of how societies respond to scarcity.

Question 7

Buildings, machines, and tools are examples of which factor of production?

Accepted Answer

Physical Capital

Question 8

Which of the following is HUMAN capital?

Accepted Answer

A lawyer using his knowledge of law

Question 9

You can buy 1 candy bar for $0.79 or 2 for $1.00. What is the marginal cost of the 2nd bar?

Accepted Answer

0.31

Question 10

Which of the following points shows "underutilization?"

Accepted Answer

E

Questions 10