Econ Unit 1 Test

What is the primary focus of economics as a science?

• Wealth accumulation
• Market prediction
• Scarcity and resource allocation
• Government policy

Which of the following is NOT typically considered a scarce resource in economics?

• Time
• Money
• Air
• Attention

What is the term for the next best alternative that must be given up when making a choice?

• Trade-off
• Opportunity cost
• Marginal benefit
• Sunk cost

In economics, what does "choice at the margin" refer to?

• Choosing between two entirely different options
• Making small changes to current activities
• Selecting the most expensive option
• Avoiding decision-making altogether

Which of the following is an example of a positive economic statement?

• The minimum wage should be increased to $15 per hour
• Raising interest rates will decrease inflation
• Free healthcare is a human right
• The government should invest more in renewable energy

What does "ceteris paribus" mean in economic modeling?

• All things being equal
• Cause and effect
• Supply and demand
• Cost-benefit analysis

Which of the following is NOT considered one of the four main factors of production?

• Land
• Labor
• Money
• Enterprise

What type of resource is a factory considered in economics?

• Land
• Labor
• Capital
• Enterprise

Who is typically paid through profits rather than wages?

• Factory workers
• Entrepreneurs
• Teachers
• Executives

What is the term for the total number of people who have jobs plus those who are unemployed?

• Workforce
• Labor force
• Employment rate
• Job market