Mary states that consumers have to buy whatever producers make. This violates the idea that

people make choices and engage in voluntary exchange

The crucial problem of economics is

using scarce resources to satisfy unlimited wants

Which would NOT be considered capital by an economist?

a share of corporate stock issued by General Motors

Making a choice means

Deciding between many possibilities

Of the following, economics is best defined as the study of

people using scarce resources to satisfy unlimited wants

Some kids choose to drop out of high school. What is the opportunity cost of dropping out?

give up higher income earned in the job market

Bob wants to play football and get a job, but doesn't have time for both. He decides to work.

His opportunity cost is playing football

Which of the following is typically true?

People's choices have consequence for the future

The phrase "There is no such thing as a free lunch" means

resources used for 1 purpose could be used for another

According to economists, the real cost of anything is

the value of the next best alternative.

People usually trade with each other when they

feel they will be better off from making a trade

Which of the following explains the reason for scarcity?

people's wants exceed the resources available

Fri you download music with your last $30. You get paid on Mon. What's your opportunity cost?

dinner and a movie with your friends on Saturday.

Which statement explains the reason for scarcity?

People’s wants exceed the resources available.

Economics predicts that a student will hit the snooze button on their alarm clock until

sleeping costs more than the benefits of getting up.

What is the difference between a shortage and scarcity?

A shortage is often short-term; scarcity always exists.

People throughout the world

purposefully - considering costs and benefits

is the next best alternative given up when you make a choice

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Economics Unit 1: Scarcity and Costs & Benefits

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Questions 30

Answers

1
Which resource describes our education, talents, and skills?
Labor
Human Capital
Land
Physical Capital
2
Which resource describes anything from nature, including air, water, oil, and timber?
Land
Human Capital
Physical Capital
Labor
3
Mary states that consumers have to buy whatever producers make. This violates the idea that
consequences of choices lie in the future
the best things in life are free
people make choices and engage in voluntary exchange
rules set the economic environment
4
The crucial problem of economics is
using scarce resources to satisfy unlimited wants
developing prices that reflect scarcity
establishing a fair tax system.
providing social goods and services
5
Which would NOT be considered capital by an economist?
a share of corporate stock issued by General Motors
a college degree
a crane used by a building contractor
a razor used by a barber
6
What is more important to economists?
Opportunity Cost
Monetary Cost
7
Making a choice means
being able to get everything
Deciding between many possibilities
not thinking of future circumstances
considering your daily horoscope
8
Of the following, economics is best defined as the study of
how governments allocate scarce resources
people using scarce resources to satisfy unlimited wants
the production of goods
ypes of business organizations
9
Some kids choose to drop out of high school. What is the opportunity cost of dropping out?
lower interest rates one is charged for credit
give up higher income earned in the job market
payments made to companies hiring drop-outs
higher taxes one pays to drop out
10
You prefer reading to watching TV & watching TV to listening to music. The opp cost of reading
listening to music
watching TV
the price of the book
is watching TV and listening to music
11
Which resource describes equipment, tools, and machinery used to produce goods and services?
Physical Capital
Labor
Human Capital
Land
12
In economics, Factors of Production are another name for
Circular Flow
Goods and Services
Economic Resources
Production Possibilities
13
Bob wants to play football and get a job, but doesn't have time for both. He decides to work.
His opportunity cost is working
His opportunity cost is playing football
There is no opportunity cost because he spends no money.
His opportunity cost is hanging out with friends.
14
Which of the following is typically true?
People's choices have consequence for the future
Voluntary trade causes winners and losers
People do not respond to incentives
Correct choices have no costs
15
The phrase "There is no such thing as a free lunch" means
free lunches are a scam but cannot be avoided
resources used for 1 purpose could be used for another
individuals, not society, suffer from a lack of resources
scarce resources are rare and therefore expensive
16
According to economists, the real cost of anything is
the amount of money you pay for it.
the number of workers required to produce it.
the value of the next best alternative.
the amount of raw material used in making it.
17
Which is considered to be an economic resource by economists?
Savings
Wages
Money
Labor
18
People usually trade with each other when they
feel they will be better off from making a trade
don't know what to expect from making a trade
think they will be worse off after making a trade
predict the costs of trading will be greater than benefits
19
A company or person who chooses less of one thing to have more of another is
eliminating scarcity.
engaging in a voluntary exchange.
making a trade-off.
balancing demand and supply.
20
Which of the following explains the reason for scarcity?
govt's buy too many goods & services, leaving little for us
Problems arise in getting products to consumers
people's wants exceed the resources available
population always grows faster than production
21
Fri you download music with your last $30. You get paid on Mon. What's your opportunity cost?
the cost to produce the music.
knowing you have the music before your friends
dinner and a movie with your friends on Saturday.
$30
22
Which statement explains the reason for scarcity?
People’s wants exceed the resources available.
Governments buy too many goods leaving little for consumers.
Population always grows faster than production.
Problems arise in getting products to consumers.
23
Iron ore, timber, tuna fish, and crude oil are examples of
land
physical capital
human capital
labor
24
Economics predicts that a student will hit the snooze button on their alarm clock until
getting up costs more than the benefits of sleeping.
their parents bring them their morning latte from Starbucks.
they are no longer tired.
sleeping costs more than the benefits of getting up.
25
What is the difference between a shortage and scarcity?
A shortage is lacking everything; scarcity is lacking one.
There is no real difference between a shortage and scarcity.
A shortage is often short-term; scarcity always exists.
Rising prices cause shortages; falling prices show scarcity.
26
The major problem facing all economic systems is related to
technology.
scarce resources.
the factors of production.
their production –possibilities frontier.
27
Which of the factors of production are used in producing and selling a simple wooden yo-yo?
capital and land
land, labor and capital
capital and labor
labor and entrepreneurship
28
People throughout the world
generously - thinking of the needs of others
randomly - leaving the outcome up to chance
impulsively - choosing quickly without much thought
purposefully - considering costs and benefits
29
Opportunity cost
is another way to say there was a change in price
does not relate to the use of one's time in any way
is the next best alternative given up when you make a choice
is defined as the amount of money spent ot buy something
30
Which resource describes the human energy put into creating a good or service?
Labor
Land
Human Capital
Physical Capital

Economics Unit 1: Scarcity and Costs & Benefits Flashcards | StudBud