Econ Unit 1 Review

Economics is the study of how people make choices about ways to use _______________ resources to fulfill their unlimited wants and needs.

• Limited

• Unlimited

• Natural

• Man-made

What are the factors of production?

• Land, Technology, Dirt, Resources

• Land, Labor, Capital, Entrepreneurship

• Land, Labor, Entrepreneurship

• Resources used in the production of only services

The central problem in economics is:

• Government

• Busineseses

• Scarcity

• Opportunity Cost

The limited availability of resources is known as...

• Scarcity

• Voluntary Exchange

• Profit

• Opportunity Cost

A student must decide between going to the movies with friends or staying home and studying for a final exam. She chooses to stay home and study. Which economic concept describes going to the movies in this scenario?

• Comparative Advantage

• Equilibrium Point

• Income Effect

• Opportunity Cost

There are 4 _______________. They are land, labour, capital and entrepreneurship.

• Factors of Production 
• Market Economy 
• Profit 
• Economics 

Goods or services that are not necessary, but that we desire or wish for. Examples: video games, toys, concert tickets, etc.

• Demand
• Needs
• Wants
• Presents

The reason why you can't have everything you want is because of ___________________.

• Opportunity Cost
• Scarcity
• Incentive 
• Choice

Opportunity Cost is best defined as

• The value of the next best alternative that is given up due to the choice you made. 
• The price you pay to purchase something. 
• The benefit you gain by making a decision. 
• The amount of debt you take on by making a decision. 

How do you satisfy your unlimited wants in a world of limited resources?

• by making more money
• by making choices
• by stealing
• by setting a budget