Chapter 1 Review (from notes) Part I

Which of the following is considered a "need"?

• Smartphone

• Shelter

• Designer clothing

• Vacation

• Video game console

Which of the following is an example of a service?

• A refrigerator

• A haircut

• A smartphone

• A book

• A bicycle

What is "human capital"?

• Natural resources used in production

• The physical tools and equipment used in production

• The knowledge and skills a worker gains through education and experience

• Money used to invest in businesses

• The number of workers available in an economy

Which of the following is NOT a factor of production?

• Land

• Labor

• Capital

• Technology

Which of the following is an example of physical capital?

• A college education

• A factory building

• Natural gas

• A workforce

• Government bonds

Which of the following is considered a natural resource?

• A factory machine

• Timber used in construction

• A smartphone

• A trained workforce

• A college degree

Which factor of production is most directly associated with 'human resources'?

• Land

• Labor

Which of the following is an example of a good used in providing a service?

• A taxi cab

• A doctor's consultation

• A teacher's lecture

• A haircut

• A meal at a restaurant

What does "standard of living" refer to?

• The amount of natural resources a country has

• The level of income inequality in a society

• The quantity and quality of goods and services available to people

• The amount of taxes a person pays

• The level of inflation in an economy

Which of the following best describes "capital formation"?

• The process of saving money in a bank

• The creation of new capital resources for future production

• The depreciation of existing capital resources

• The extraction of natural resources

• The hiring of new employees