Chapter 1 Economics

Which of the following are factors of production?

• economics & business decisions

• technology & productivity

• scarcity & shortage

• capital & land

The principle that limited amounts of goods and services are available to meet unlimited wants.

• scarcity

• shortage

• factors of production

• incentives

The two types of capital

• Physical & Land

• Labor & Land

• Human & Labor

• Physical & Human

Opportunity cost

• the next best alternative

• money you owe for your decision

• what you gain for your decision

• lost money

An economy that is producing the maximum amounts of goods & services is called

• underutilized

• efficient

• growing

• trading off

A factory is an example of which factor of production?

• Land

• Labor

• Physical Capital

• Human Capital

Another term for a business

• Firm

• Household

• Labor

• Land

Entrepreneurs

• take risks

• create ideas

• start businesses

• all of the above

Why would you want to produce a production possibilities curve?

• to show different ways a countries resources can be used

• show the benefits of using 1 type of technology over another

• to improve the way a product is manufactured

• to reduce the scarcity of resources and labor

Which of the following is an example of a service?

• hair spray

• hair cut

• hair brush

• hair ball