RC 4

Raw materials such as coal and iron ore that are used in the production of goods are called

• capital resources

• wasted resources

• natural resources

• human resources

An individual decides to pay $8 to see a movie instead of buying an $8 meal. What is the opportunity cost of the movie?

• the satisfaction missed by not eating the meal

• the $8 paid to see the movie

• the time spent watching the movie

• the satisfaction received by going to the movie

Which of the following is an example of an investment in human capital?

• A company builds a new factory.

• A state puts in a new highway.

• A person goes to college.

• A country builds new schools.

The idea that producers make goods that consumers like and are willing to pay for is a principle of which of the following economic systems?

• Traditional

• Command

• Market

• Socialism

In which economic system does the government own the means of production?

• Traditional

• Mixed

• Market

• command

Martin has decided to spend some of his money on a compact disc (CD). The CD can be best described as a

• need.

• want.

• scarcity.

• opportunity cost.

Which of the following pairs best completes the diagram?

• Traditional – Mixed

• Market – Command

• Command – Traditional

• Mixed – Market

What is scarcity?

• The act of being afraid

• The excess of a product that hasn't been sold

• The inability to satisfy the unlimited wants and needs of people.

• The number of goods and services consumers want

Which of the following BEST explains why consumers, producers and governments have to make choices?

• our income determines what we can choose

• our resources are limited

• as consumers we are free to choose what we want

• the more we earn the more we can choose

In every economic system, what must people choose to do?

• Satisfy all the wants of their society

• Make the best use of scarce resources

• Create an equal distribution of income

• Save money to reduce the national debt