Economics Chapter 1 Review

Which is not considered a need?

• food

• clothing

• shelter

• television

Which of the following best describes wants?

• limited and ever changing

• unlimited and ever changing

• limited and never changes

• unlimited and never changes

Which of the following buys goods for personal use?

• consumer

• producer

• advocate

• client

Into what four categories do economist divide factors of production?

• land, labor, capital, and entrepreneurship

• land, labor, money and entrepreneurship

• resources, labor, capital and entrepreneurship

• resources, labor, money, and entrepreneurship

Which term means “making decisions based on what you believe is the best combination of costs and benefits?”

• economizing

• budgeting

• cutting back

• motivating

What does the saying “There is no such thing as a free lunch” mean?

• some things cost nothing

• most things cost nothing

• most things cost something

• everything costs something

Which of the following examines the costs and expected benefits of a choice?

• choice-benefit analysis

• cost-profit analysis

• cost-benefit analysis

• choice-profit analysis

Which of the following involves using resources to produce the maximum amount of goods and services?

• utilization

• underutilization

• efficiency

• over efficiency

What is another named for the production possibilities curve?

• production possibilities border

• production possibilities frontier

• production possibilities perimeter

• production possibilities edge

What does a point inside the curve of a PPC indicate?

• all resources are fully employed

• not all resources are fully employed

• more resources are required

• less resources are required