Why are goods and services scarce?

resources used to produce them are limited

How can we make the best economic choices?

effect of limited resources, use of decision making grids, use of production possibilities curves, examine trade-offs

Which economy is efficient?

one that makes the most goods and services possible

Which person below is an entrepreneur?

an artist who runs a business painting murals

A cost/benefit analysis helpful is all EXCEPT...

Helps you see if loses are more than costs, you will gain

Which is an example of thinking at the margin?

what you'll give up & what you'll gain by hiring new workers

You bought 2 CD's with your last $30. What is the opportunity cost?

the movie with your friends that you now can't afford

What are the factors of production?

land, labor, capital, entrepreneurs

How do resources affect a country’s productionpossibilities?

A country can only produce as much as its resources allow

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Economics Chap 1 Test Review

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Questions 22

Answers

1
Which would a company do to increase its human capital?
hire more part-time workers
provide training
build a company cafeteria
lease cars for employees
2
Why are goods and services scarce?
some goods cost more than others
resources used to produce them are limited
people want more than they can have
greedy people want too many goods
3
How can we make the best economic choices?
effect of limited resources
use of decision making grids
use of production possibilities curves
examine trade-offs
4
What you give up to get something else
underutilization
opportunity cost
marginal cost
scarcity
5
Which economy is efficient?
one that uses fewer resources than are available
one that makes the most goods and services possible
one that makes fewer goods because workers are laid off
one that wastes fuel when making goods
6
A factory bottles apple & cranberry juice. Wants to bottle more apple juice. The trade-off is?
more cranberry juice
a smaller factory
less cranberry juice
a bigger factory
7
Risk taker who starts a new business
entrepreneur
marginal cost
labor
economics
8
Which person below is an entrepreneur?
a secretary in a law firm
an artist who runs a business painting murals
person who writes technical manuals for a computer company
an ice skater in a professional ice show
9
Not using all of the available resources
scarcity
underutilization
economics
efficiency
10
The study of how people make choices when supplies are limited
entrepreneur
opportunity cost
marginal cost
economics
11
The extra cost of making one unit
land
need
marginal cost
opportunity cost
12
All natural resources used to make goods
labor
entrepreneur
capital
land
13
A nations leaders must decide whether to spend money on the military or on helping farmers.
a decision at the margin
underutilization of resources
guns or butter issue
the law of increasing costs
14
Something important for survival
want
need
land
labor
15
Using resources in the best way
efficiency
economics
underutilization
scarcity
16
A cost/benefit analysis helpful is all EXCEPT...
Helps you see if benefits are more than costs, you will gain
helps you compare what you will gain and lose
Helps you see if loses are more than costs, you will gain
17
Which is an example of thinking at the margin?
drawing plans to build an extra room on an old home
thinking about whether or not to vacation to a warm beach
deciding whether to have a dog or a cat as a pet
what you'll give up & what you'll gain by hiring new workers
18
You bought 2 CD's with your last $30. What is the opportunity cost?
the $30 that you gave the clerk for the CD's
the cost to make the CD's and the price you paid
the joy of knowing you are the first to have these CD's
the movie with your friends that you now can't afford
19
What are the factors of production?
land, physical capital, financial capital
land, labor, capital
land, labor, capital, entrepreneurs
20
Efforts that earn wages
entrepreneur
labor
efficiency
need
21
The idea that goods and services are limited
marginal cost
scarcity
entrepreneur
need
22
How do resources affect a country’s productionpossibilities?
A country can only produce as much as its resources allow
Buy more resources
It doesn't

Economics Chap 1 Test Review Flashcards | StudBud