Economics 2nd Semester Unit 1 Review

Question 1

If Sarah has to choose between going out with friends or studying for a test, which concept explains her limited time?

Accepted Answer

Scarcity

Question 2

What do the two points on the line represent?

Accepted Answer

Efficiency

Question 3

Why is it essential for a society to answer the three Basic Economic Questions?

Accepted Answer

Figure out how to allocate scarce resources for unlimited wants and needs

Question 4

When all four factors of production are present, what occurs?

Accepted Answer

Efficient production takes place

Question 5

If someone might purchasing a computer, what economic factor must they evaluate regarding other potential purchases?

Accepted Answer

Opportunity Cost

Question 6

Which resource is classified as the factor of production called land?

Accepted Answer

Coal

Question 7

Which point on the graph is attainable given current resources, but inefficient?

Accepted Answer

C

Question 8

The production possibilities frontier...

Accepted Answer

illustrates the concepts of opportunity costs

Question 9

What is the fundamental problem that all economic systems encounter?

Accepted Answer

Scarcity

Question 10

The funds used to establish a business are known as:

Accepted Answer

Capital

Question 11

Economics primarily studies:

Accepted Answer

How scarce resources are employed to fulfill unlimited wants and needs

Question 12

A person who innovates a new product idea and invests money into it is referred to as a:

Accepted Answer

Entrepreneur

Question 13

The raw materials used in the production of a product belong to which factor of production?

Accepted Answer

Land

Question 14

Which of the following exemplifies entrepreneurship?

Accepted Answer

Opening a small café and designing its menu

Question 15

The shift from line a to line b on this PPC means

Accepted Answer

the economy has grown

Question 16

The Production Possibilities Curve represents...

Accepted Answer

Maximum attainable amount of products that can be produced.

Question 17

The pizza ovens in a Little Caesar’s location are categorized as:

Accepted Answer

Capital resources

Question 18

If you are employed by a company, what factor of production do you represent?

Accepted Answer

Labor

Question 19

When a society opts for human labor over machines for production, which basic economic question have they addressed?

Accepted Answer

How to produce?

Question 20

Which point on the graph is unattainable given current resources?

Accepted Answer

E

Questions 20