Econ Module 1 Exit Test Review Questions

Consumers' desire for goods exceeding the availability of goods leads to

• Scarcity

• Inflation

• Debt

• Surplus

Factor of production related to natural/raw resources, such as precious metals or agricultural products.

• Land

• Labor

• Capital

• Entrepreneurship

The concept that when you make a choice, you are giving up or not getting something by not making a different choice. Example: money spent on video games is money that can't be spent on groceries.

• Opportunity cost

• Scarcity

• Budgeting

• Cost-Benefit Analysis

The concept that as the amount of goods a company produces goes up, the prices of producing those goods goes up, too.

• Law of Increasing Opportunity Cost

• Mo' goods, mo' problems.

• The Surplus Effect

• Scarcity

Having to make economic decisions arises from the facts that...

• Resources are limited in quantity.

• There are gaps between our unlimited wants and limited means/resources.

• Too much of a good thing is a bad thing.

• Resources are unlimited in quantity.

From country to country, the way goods are distributed

• varies widely.

• is consistent.

Products that are activities or expertises of people, firms, or government agencies. Examples: Education, Retail stores.

• Services

• Raw Materials

• Labor

• Capital

Deciding between alternatives, such as whether to get chicken tenders or a burger combo, is known as

• A trade-off

• Scarcity

• The right choice

• The wrong choice

A person who buys goods for personal use

• consumer

• wholesaler

• Thrifter

• human being

The factor of production related to the technology and machinery a company uses

• Capital

• Entrepreneurship

• Land

• Labor