11 ECO Chapter 1 Review

Economic wants are limited at any point in time

• True

• False

All people are consumers

• True

• False

Enterprise is another name for labour

• True

• False

The main economic decisions to be made by an economy could be listed as: 'What and how many', 'how', and 'for whom'

• True

• False

'Opportunity Cost' refers to the monetary price that a consumer must pay for a good or service

• True

• False

Wants are unlimited but never change

• True

• False

Australia would be considered a modified market economy

• True

• False

Capital goods are used to satisfy wants

• True

• False

The four factors of production are land, labour, water, and enterprise

• True

• False

Economics is considered to be a social science because

• It is an analytical, problem-solving discipline

• It deals with human problems in a scientific way

• The economist can test hypotheses under controlled laboratory conditions

• The economist studies problems in the same way as the natural or physical scientist