Chapter 1 Sec 1-2 quiz

Because we face scarcity, we must make _____________.

• studies

• money

• profit

• choices

Our inability to satisfy all our wants is called ___________.

• profit

• scarcity

• surplus

• wages

A(n) __________________ is a reward that encourages an action or a penalty that discourages an action.

• fine

• FOPs

• incentive

• human capital

The work time and work effort that people devote to producing goods and services is __________.

• labor

• land

• capital

• rent

The tools, instruments, machines, buildings, and other constructions that businesses use to produce goods and services are _____________.

• land

• capital

• entrepreneurship

• labor

The human resource that organizes land, labor, and capital is _________________.

• land

• labor

• capital

• entrepreneurship

You make choices that are in your ___________—choices that you think are best for you.

• social-interest

• studies

• efficiency

• self-interest

____________ is fairness, but economists have a variety of views about what is fair.

• efficiency

• profit

• risk

• equity

Which of the following best describes an entrepreneur?

• a person who works as an office clerk at a major corporation
• a person who combines the factors of production to produce innovative products
• a special type of capital 
• wealthy individuals who provide savings that stimulates the economy

The benefit you give up by choosing to do one thing instead of another

• Opportunity Cost

• Profit

• Scarcity

• Producers