Chapter 1 Quiz Smith 2020

Societies are faced with which three basic questions about production of goods?

• what, how, and why

• what, where, and when

• what, how, and for whom

• when, where, and for whom

Which of the following helps determine something’s value?

• utility

• scarcity

• beauty

• both scarcity & utility

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

• land

• labor

• capital

• entrepreneur

Opportunity cost refers to

• the dollar amount attached to a good or service.

• the value of the next best alternative.

• the cost of not expanding production.

• the cost of labor when production is expanded or changed.

When deciding how to use resources, you need to evaluate the costs and benefits of each choice to decide which meets your criteria. These are called

• trade-offs

• opportunities

• production possibilities

• resource frontiers

Consumers are powerful because

• they have more rights than corporations

• they help decide a business’s opportunity costs.

• they drive decisions about what to produce.

• their interests force producers to behave ethically

The amount of output in a specific amount of time with a given amount of resources is referred to as

• productivity

• efficiency

• human capital

• investment risk

computers used to produce magazine articles would be classified as:

• land

• labor

• capital

• entrepreneur

A third grade teacher would be classified as:

• land

• labor

• capital

• entrepreneur

the manager of a car repair shop would be classified as:

• land

• labor

• capital

• entrepreneur