SSEF Unit 1 Review

Front

Which of the following best describes scarcity? Having unlimited resources, The basic economic problem of unlimited wants and limited resources, Having enough resources to satisfy all wants, Only applying to poor countries

Back

The basic economic problem of unlimited wants and limited resources

Front

What are the three basic economic questions?

Back

What to produce, how to produce, for whom to produce

Front

What is opportunity cost?

Back

The next best alternative given up when making a choice.

Front

Which of the following is an example of a capital resource? A factory worker, Money in a bank account, A delivery truck, Crude oil

Back

A delivery truck

Front

Which of the following is NOT a characteristic of rational decision making? Weighing costs and benefits, Considering alternatives, Gathering relevant information

Back

Making choices based solely on emotion

Front

What is the law of increasing opportunity costs?

Back

As more of a good is produced, the opportunity cost of producing additional units increases.

Front

Which of the following is an example of a positive economic statement? The minimum wage should be increased, Higher taxes are unfair, The unemployment rate is 5%, Government spending should be reduced

Back

The unemployment rate is 5%

Front

What does the concept of marginalism refer to in economics?

Back

Analysis of additional costs and benefits

Front

Which of the following is NOT a factor of production? Land, Labor, Capital, Money

Back

Money

Front

What is the primary function of entrepreneurs in a market economy?

Back

Taking risks and innovating