Economics Unit 1 Test Review

Economics Unit 1 Test Review

Terms, Factors of Production, and PPF

Let's do a basic term review first

Good luck!

Multiple Choice

Which of the following is NOT a need?

• water

• shelter

• food

• transportation

Multiple Choice

One way to think about labor as a factor of production is to think of it as:

• ideas

• human work

• tools

• things that are related to the land

Multiple Choice

One way to think about entrepreneurship as a factor of production is to think of it as:

• ideas

• human work

• tools

• things that are related to the land

Multiple Choice

One way to think about natural resources as a factor of production is to think of it as:

• ideas

• human work

• tools

• things that are related to the land

Multiple Choice

One way to think about capital as a factor of production is to think of it as:

• ideas

• human work

• tools

• things that are related to the land

Multiple Select

Which of these is a part of the natural resources needed for production of a home? There is more than one correct answer here.

• electrician

• copper

• wrench

• timber/lumber

• rock

Multiple Choice

Which of these is a part of the capital resources needed for production of a home?

• plumber

• architect

• hammer

• timber/lumber

Multiple Select

Which of the following are examples of incentives? There is more than one answer.

• buy one/get one sales

• coupons

• postcard from the store thanking you for your purchase

• "dollars" - credit/coupon for a future purchase

• having a wide selection of colors

Multiple Choice

When there is a possible shortage of a given item, we call it:

• scarcity

• consumption

• surplus

• demand

Multiple Choice

PPF stands for

• production–possibility frontier

• production, products, and finance

• possible products from finances

• possible product finalization

Multiple Choice

When someone focuses on producing just one kind of thing or perfects a service, we call it:

• incentive

• shortage

• specialization

• PPF

Multiple Choice

Which of the following is an example of specialization?

• Mya only does dreadlocks at her salon

• George has a restaurant where they serve Italian, Mexican, and American dishes.

• Dequan is a general practitioner (a doctor who can see you for any issue)

• Sonja is the manager at Target

Multiple Select

Which two of the following would most likely be considered services?

• hair salon

• gas station

• clinic/doctor

• grocery store

• pharmacy

Multiple Choice

Nichole went to the store to purchase breakfast cereal. She chose to purchase Apple Jacks. Which of the following is her opportunity cost?

• the gas and time it took to drive to the store

• the cost of the Apple Jacks

• the other cereals she did not buy

Thank you for reviewing for you upcoming test.

- Ms. G