Gov. - Unit 5 Study Guide - Economics

Tom was shopping for a car. He has looked at a Ford, Honda, Toyota, and Dodge. After a lot of debate, he narrowed it down to either the Ford or the Honda. He selected the Ford, because he liked the interior a little better. What was his opportunity cost?

• Ford
• Toyota
• Honda
• Dodge

Limited Resources + Unlimited Wants =

• Scarcity
• Efficiency
• Opportunity Cost
• Productivity

Emily is deciding what to do after high school. Right now her two options are: go to college or enter the workforce/get a job. She can only choose one. Emily decides to get a job. Which of the following is the opportunity cost of her decision?

• time
• job
• money
• college

Land includes...

• The "gifts of nature" or natural resources not created by human effort.
• Individuals who start a new business or bring a product to market.
• People with all their efforts and abilities.
• The tools, equipment, and factories used in production of goods and services.

 Capital refers to...

• The "gifts of nature" or natural resources not created by human effort.
• Individuals who start a new business or bring a product to market.
• People with all their efforts and abilities.
• The tools, equipment, and factories used in production of goods and services.

Labor refers to...

• The "gifts of nature" or natural resources not created by human effort.
• Individuals who start a new business or bring a product to market.
• People with all their efforts and abilities.
• The tools, equipment, and factories used in production of goods and services.

What are the four factors of production?

• Land, labor, capital, entrepreneurs
• Land, capital, goods, services
• Land, capital, needs, wants
• Water, air, food, shelter

What is the factor of production called that is responsible for coordinating all other factors of production in order to make goods and services?

• Land Resource
• Capital Resource
• Entrepreneur
• Labor Resource

Which one of the following is an opportunity cost?

• You run a red light and you get a ticket.
• You choose to give up math to study for history.
• In a softball game, you miss the ball and strike out.
• You stay out late and your parents ground you.

What do points inside the PPF curve indicate?

• The combination of goods that do not employ resources fully.
• The combination of goods that employ resources fully.
• The combination of goods that employ goods is efficient.