Scarcity 1
What is scarcity?
A. A situation in which resources are unlimited
B. The condition that exists because wants exceed available resources
C. A government plan for producing goods
D. The money price of a product
B.The condition that exists because wants exceed available resources
Why does scarcity exist in every society?
A. Human wants are unlimited, but resources are limited
B. Every society produces the same goods
C. Governments prevent all production
D. People have only needs and no wants
A. Human wants are unlimited, but resources are limited
What is entrepreneurship?
A. The use of natural resources only
B. The purchase of finished goods
C. The physical work done by employees
D. The ability to organize resources, create a business, and accept risk
D. The ability to organize resources, create a business, and accept risk
In economics, resources are best defined as
A. only the money owned by consumers
B. inputs used to produce goods and services
C. goods that have already been sold
D. unlimited supplies provided by nature
B. inputs used to produce goods and services
What is human capital?
A. Money used to pay employees
B. Natural resources owned by workers
C. The education, training, skills, and experience of workers
D. Buildings and machines used by workers
C. The education, training, skills, and experience of workers
Which of the following is a good?
A. A haircut
B. A medical examination
C. A bicycle
D. A tutoring session
C. A bicycle
Which of the following is a service?
A. A teacher providing a lesson
B. A loaf of bread
C. A laptop computer
D. A pair of shoes
A. A teacher providing a lesson
What is a trade-off?
A. The total money earned from a decision
B. Giving up one alternative to obtain another
C. A resource that has no alternative use
D. A decision with no cost
B. Giving up one alternative to obtain another
What is labor in economics?
A. Human effort used to produce goods and services
B. All tools and machines used in production
C. The natural resources used by a business
D. The risk taken by a business owner
A. Human effort used to produce goods and services
Which item is an example of capital used in production?
A. A forest
B. A factory machine
C. A factory worker
D. An entrepreneur's idea
B. A factory machine
What is opportunity cost?
A. The selling price of the chosen item
B. The total value of every possible choice
C. A fee paid for using a resource
D. The value of the next-best alternative that is given up
D. The value of the next-best alternative that is given up
. How can a business experience scarcity?
A. It always has unlimited workers and materials
B. It can produce every product customers request
C. It has limited money, workers, time, equipment, and materials
D. It never has to choose how to use resources
C. It has limited money, workers, time, equipment, and materials
Which situation best demonstrates scarcity faced by a government?
A. It can fund every public program fully
B. It has no demand for public services
C. It can collect unlimited taxes without consequences D. It must choose how to divide a limited budget among schools, roads, and public safety
D. It must choose how to divide a limited budget
What are the four factors of production?
A. Needs, wants, goods, and services
B. Scarcity, choice, cost, and benefit
C. Land, labor, capital, and entrepreneurship
D. Money, prices, markets, and taxes
C. Land, labor, capital, and entrepreneurship
. Which example is classified as land, or a natural resource?
A. A delivery truck
B. A trained mechanic
C. A business loan
D. Timber used to build furniture
D. Timber used to build furniture
18. Jordan studies for an economics test instead of attending a basketball game. What is Jordan's opportunity cost?
A. The grade Jordan earns on the test
B. The basketball game Jordan gave up
C. The total number of hours in the day
D. The price of the economics textbook
B. The basketball game Jordan gave up
Which statement correctly distinguishes a need from a want?
A. A need is always expensive, while a want is free
B. A want is necessary for survival, while a need is optional
C. Needs and wants mean exactly the same thing
D. A need is necessary for survival, while a want adds comfort or enjoyment
D. A need is necessary for survival, while a want adds comfort or enjoyment
How can technology affect production?
A. It eliminates scarcity permanently
B. It guarantees that no workers are needed
C. It answers only the question of who receives goods D. It can increase productivity and change the combination of labor and capital used
D. It can increase productivity and change the combination of labor and capital used
Which responsibility is commonly accepted by an entrepreneur?
A. Combining resources and risking loss to pursue a business opportunity
B. Guaranteeing that resources will never be scarce
C. Avoiding all decisions about production
D. Providing every product without charging a price
A. Combining resources and risking loss to pursue a business opportunity
What does the economic question 'What should be produced?' require a society to decide?
A. Which goods and services to make and in what quantities
B. Which workers should receive the highest wages
C. Whether resources should remain unused
D. How every consumer must spend income
A. Which goods and services to make and in what quantities
How can a business experience scarcity?
A. It always has unlimited workers and materials
B. It can produce every product customers request
C. It has limited money, workers, time, equipment, and materials
D. It never has to choose how to use resources
C. It has limited money, workers, time, equipment, and materials
Why can opportunity cost be different from the money price of a choice?
A. Opportunity cost includes the next-best alternative given up, which may involve time or another benefit
B. Opportunity cost is always listed on a price tag
C. Money prices measure every sacrifice a person makes
D. Opportunity cost applies only when no money is spent
A. Opportunity cost includes the next-best alternative given up, which may involve time or another benefit
Which factor may influence a society's decision about what to produce?
A. The belief that resources are unlimited
B. Consumer demand and the availability of resources C. A requirement that every country produce identical goods
D. The elimination of all opportunity costs
B. Consumer demand and the availability of resources
Why does every economic decision involve
a trade-off? A. All alternatives have the same result
B. Resources can be used for every purpose at once
C. Choosing one alternative means giving up another D. Only governments face limited resources
C. Choosing one alternative means giving up another
What does the question 'For whom should goods and services be produced?' ask?
A. How output will be distributed among people
B. Which natural resources exist
C. How entrepreneurs create businesses
D. Which machines should be purchased
A. How output will be distributed among people