Basic Economics

Question 1

If a choose to buy an Apple computer, but my second choice is a Dell computer. The Dell computer represents the:

Accepted Answer

opportunity cost

Question 2

Scarcity exists because we have unlimited _______________ and limited ________________.

Accepted Answer

wants, resources

Question 3

Obtaining legal advice would be an example of purchasing a good.

Accepted Answer

False

Question 4

An economy where consumers and producers decide what will be produced.

Accepted Answer

market

Question 5

The United States is a purely market economy.

Accepted Answer

False

Question 6

Raw materials found in nature (wind, water, minerals, plant life) are examples of:

Accepted Answer

natural resources

Question 7

Capital resources include only the money needed to start and maintain a business.

Accepted Answer

False

Question 8

What type of resource is described as people who work to produce goods and services?

Accepted Answer

human resource

Question 9

Which of the folloiwing is an example of a public good?

Accepted Answer

Roads and bridges

Question 10

Something that is non-essential, but adds to our quality of life is called a:

Accepted Answer

want

Question 11

Goods are things that you can see and touch.

Accepted Answer

True

Question 12

An economy that allocates resources based on habits or customers is known as:

Accepted Answer

traditional economy

Question 13

An economy where resourced are owned and controlled by the government is known as:

Accepted Answer

command economy

Questions 13