Chapter 1 Economics Test

Which is not considered a need?

• food

• water

• shelter

• cell phone

A need is fulfilled by

• video games

• food

•  jewelry

• movie tickets

Which of the following best describes wants?

• limited and ever changing   

• unlimited and ever changing

•      limited and never changes

• unlimited and never changes

The study of how people choose to use scarce resources to satisfy their wants is called

•  choice

• economics

• entrepreneurship

• scarcity

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

The ongoing tension of not having enough resources to meet human wants is called

• need

• scarcity

• shortage

• surplus

Physical products that can be purchased are called

•  bonds

• services

•  goods

• stocks

The human time, effort, and talent that go into the making of products is called

• capital

•  labor

•  knowledge

• scarcity

Benefits offered to encourage people to act in certain ways are

•  incentives

•  motives

• utilities

•  wants