Chapter 1 Review

What type of economics looks at small units like individuals, families, and businesses?

• Macroeconomics

• Nanoeconomics

• Microeconomics

• Bruce's Ecconomics

Making a decision by weighing the pros and cons is called

• deductive method

• flip a coin

• economic impact analysis

• cost benefit analysis

The father of economics is

• Karl Marx

• Milton Friedman

• Adam Smith

• George Washington

When a family decides to buy a used car they are using what type of economics?

• Macroeconomics

• Microeconomics

• Principal's Law

• Nanoeconomics

The term for having limited resources to meet unlimited wants and needs is

• Productivity

• Specialization

• Scarcity

• Profit

Economics is the study of how people

• Gain knowledge and skills from studying

• Choose from limited resources to meet their wants

• Respond to war and drought

• Calculate their income

Which of the following is a capital resource?

• Power Drill

• Iron Ore

• Manager

• Consumer

Answer explanation

Capital resources are the things we need to produce goods or provide services.

Which of the following is a human resource?

• Power Drill

• Manager

• Iron Ore

• Consumer

Answer explanation

Human Resources (aka, Labor Resources) are the people used to produce goods and services. Human Resources can also include training or education for the same people.

Which of the following is a natural resource?

• Oak Tree

• Hammer

• Engineer

• Factory

Answer explanation

Natural Resources (aka, land resources) are the naturally occurring stuff (land, water, minerals, etc.) that are used to produce goods and services.

The more we have of something, the less satisfaction we get from it. This is called

• Murphy's Law

• Opportunity Cost

• Macroeconomics

• The Law of Diminishing Marginal Utility