Chapter 1 Basic Economic Principles Quiz

Which of these best desrcibes the definition of the long run time period in economics?

• No change can be made to production
• All resources used in production can be changed
• It is possible to think even further ahead in time
• Only one of the resources used in production can be changed.

Inputs available for the production of goods and services is called what?

• resources
• wants
• scarcity
• Choice

A situation in which wants and needs are in excess of the resources available is better known as what?

• resources
• wants
• scarcity
• choice

Underpins the concept that resources are scarce so choices have to be made by, consumers, firms and governments.

• resources
• wants
• scarcity
• choice

Needs that are not always realized are also called?

• resources
• wants
• scarcity
• choice

Natural resources in an economy are called?

• Land
• Labour
• Capital
• Entrepreneur

A man-made aid to production.

• Land
• Labour
• Capital
• Entrepreneur

Human resources available in an economy are called?

• Land
• Labour
• Capital
• Entrepreneur

Organizes production and is willing to take risks is know as?

• Land
• Labour
• Capital
• Entrepreneur

The cost expressed in terms of the best alternative that is forgone is called?

• Factors of Production
• Opportunity Cost
• Economic Structure
• Production Possibility Curve