Econ Unit 1 Review

What is the paradox of value?

• contradiction between gross domestic product and market value

• contradiction of what consumers want and what they need

• high value of a nonessential item and low value of an essential item

• high value of an essential item and the low value of a nonessential item

What is opportunity cost?

• the risk associated with producing a new item

• the cost of choosing one alternative over another

• the cost of business failure

• the initial cost of starting a new business

What are the 3 basic economic questions?

• when, where, and for whom

• what, how, and for whom

• what, where, and when

• what, why, and how

Which of the following is a durable good?

• can of soup

• banana

• ketchup

• computer

Which of the following is a nondurable good?

• car

• book

• medicine

• gold ring

What is the capacity to be useful and provide satisfaction?

• value

• utility

• wealth

• specialization

Which of the factors of production involves taking risks and combining resources to produce a good or service?

• land

• labor

• capitol

• entreprenuer

Which of the factors of productions involves natural resources?

• land

• labor

• capital

• entreprenuer

Which of the factors or production involves workers with all their skills and abilities?

• land

• labor

• capital

• entrepreneur

Which factor of production involves goods used to create other goods or services for consumers?

• land

• labor

• capital

• entrepreneur