Unit 1 ALL QUESTIONS

trees, solar energy, and water are examples of: a)nonrenewable resources b)renewable resources c)capital d)labor

b)renewable resources

"Alex is at the hardware store comparing different types of piping for a repair in his home kitchen. he can choose between copper piping or plastic piping. he knows that copper piping is stronger but more expensive. he also knows that plastic piping will work for the job that he is doing, and it is less expensive" based on the information presented in this scenario, what can you determine about the copper piping? a)copper is a resource that is less scarce than plastic b)copper is more freely available than plastic c)copper is a renewable resource d)copper is a scarce resource, which increases its value

d)copper is a scarce resource, which increases its value

which of these statements demonstrate the economic concept of scarcity? check all that apply. -all useful resources are limited in their supply -everyone is able to meet all their wants and needs -the wants and needs of people are unlimited -resources are scarce, which explains why we are willing to pay for them -a large economy is able to eliminate the effects of scarcity -because of scarcity, individuals must make choices

-all useful resources are limited in their supply -the wants and needs of people are unlimited -resources are scarce, which explains why we are willing to pay for them -because of scarcity, individuals must make choices

which of these statements accurately describe economics? check all that apply. -economics is the study of how goods and services are made and sold -the principle of scarcity is a driving force of economic decisions -services are things like groceries, cars and office buildings

-economics is the study of how goods and services are made and sold -the principle of scarcity is a driving force of economic decisions -producers and consumers interact to influence the economy

which statements correctly identify limitations of the factors of production? check all that apply. -economies must consider their limitations when answering the three questions of economics -land is a factor of production that is limited only by the amount available -capital includes all money and physical facilities needed to create a product -labor is a factor driven by the size of the population, education, and standard of living -an economy can function well when producing outside its limitations

-economies must consider their limitations when answering the three questions of economics -capital includes all money and physical facilities needed to create a product -labor is a factor driven by the size of the population, education, and standard of living

which statements demonstrate the meaning of opportunity cost for producers and consumers? check all that apply. -if producers can only produce one item, they must decide which item to produce based on profit -consumers are limited by their resources and must give up the chance to purchase one item in order to buy another -consumers and producers are not limited by scarcity of resources over time -when deciding to produce or purchase one item, another opportunity must be given up. -the only factor influencing opportunity cost is personal opinion

-if producers can only produce one item, they must decide which item to produce based on profit -consumers are limited by their resources and must give up the chance to purchase one item in order to buy another -when deciding to produce or purchase one item, another opportunity must be given up

Which statements accurately describe the roles of producers and consumers? check all that apply. -producers make and sell things -consumers buy goods and services -producers buy goods and services -consumers make and sell things -producers provide services to consumers -consumers provide capital to producers

-producers make and sell things -consumers buy goods and services -producers provide services to consumers -consumers provide capital to producers

Which statements accurately show the concept of scarcity? Check all that apply. -There is a drought in the middle of a growing season that has affected corn crops -an individual is not able to purchase a newly released video because of limited supply -a family is selling apples they have grown on their farm because they have too many to eat themselves -an individual wants to buy a new car because his is old an individual decides that she needs to obtain a second job to save money to purchase a house

-there is a drought in the middle of growing season that has affected corn crops -an individual is not able to purchase a newly released video because of limited supply -an individual decides that she needs to obtain a second job to save money to purchase a house

1) opportunity cost is what must be __________ in order to _______ something else. a1)received b1)given up c1)replaced - a2)give up b2)gain c2)replace 2) opportunity cost forces consumers and producers to make ___________ a)products b)purchases c)choices

1) b1)given up - b2)gain 2) c)choices

1) according to the rules of economics, all resources are __________ in their supply. the wants and needs of people are ________________ a1)renewable b1)limited c1)unlimited - a2)nonrenewable b2)limited c2)unlimited 2) the more scarce a resource is, the _________ people are willing to pay for it. the principle of scarcity forces people to ____________. a1)more b1)less c1)fewer - a2)borrow things b2)make choices c2)sell goods

1) b1)limited - c2)unlimited 2) a1)more - b2)make choices

1) individuals who make and sell goods and services are __________. a)producers b)consumers 2) individuals who buy goods and services are _________. a)producers b)consumers 3) the idea that resources are _______ is called scarcity. a)limited b)unlimited

1)producers 2)consumers 3)limited

1) Land, labor, and capital are known as factors of ________. a)production b)economics c)consumerism 2) economies must answer the three economic questions because resources are ________. a)abundant b)limited c)common 3) _________ consequences can result when an economy does not answer the three economic questions a)positive b)negative c)neutral

1)production 2)limited 3)negative

1) _____ helps to allocate resources for their best and most productive uses a)profit b)money c)value 2) the more _______ a resource, the more costly it will be a)scarce b)available c)common 3) a manufacturer that requires scarce and costly resources is like to charge __________ for its products a)less b)the same c)more

1)value 2)scarce 3)more

"as participants in a global economy, the young people of today and tomorrow will face a plethora [large number] of possibilities that our generation could only dream about. It is our duty to give them the tools they need to make the best choices among these seemingly infinite possibilities... I believe that economics can provide such tools unlike any other discipline." -william poole, federal reserve bank of st. louis according to the quote , why does this economist think students should study economics a) to learn how to make good economic decisions b) to limit future possibilities c) to learn how to become US politicians d) to become equipped to understand their dreams

a) to learn how to make good economic decisions

"a glass-making company has decided it is not generating enough profit because its production costs are too high. to reduce these costs, the company wants to replace the employees who make glass by hand with new machines. this switch will result in lower quality products which must be sold a lower price. however, the company's profits will increase because its production costs are lower." based on what you have read, what is the opportunity cost of the glass-making company's decision? a)a loss of employees b)a greater profit c)a higher quality item d)a longer production time

a)a loss of employees

the three questions of economics are based on decisions made by economies. what statement best describes why economies must make these decisions? a)economies must make these decisions because resources are unlimited, but production must be limited b)economies must make these decision because resources are limited c)economies must make these decisions because consumers cannot make decisions on their own. d)economies must make these decisions to prevent producers from over-producing

b)economies must make these decisions because resources are limited

"the people of baselandia have to make a decision. to operate their new machine at peak efficiency, they need to switch from using renewable resources to nonrenewable resources as the machine's energy source. however, using the nonrenewable resources will require them to permanently destroy their land." in this scenario, what is the nonrenewable resource an example of? a)labor b)land c)capital d)entrepreneurship

b)land

what issue results from the combination of limited resources and unlimited wants? a) production b) profit c) scarcity d) allocation

c) scarcity

"samantha has played basketball since she was six years old. each winter she starts practicing for her local team. this year, she has decided to take a job at a supermarket. samantha is not able to do both activities, because her shift at the supermarket would begin before the team's practices would end." based on what you have read, if samantha works at the supermarket, what is her opportunity cost? a)working at a new job b)earning extra spending money c)gaining job experience d)missing out on playing basketball

d)missing out on playing basketball

1) Katrina is starting her own business producing all-natural beverages. She must use ________ to create her product a)resources b)materials c)money 2) the water that she is using to create her beverage line is an example of ______. a)labor b)capital c)land 3) the number of employees required to produce her beverage line is an example of ___________. a)labor b)capital c)land 4) the money that she must spend to rent a factory to produce her beverage line is an example of _________/ a)labor b)capital c)land

1)resources 2)land 3)labor 4)capital

1) resources are things people use to make goods and provide _________. a)employment b)items c)services 2) the resources used to create goods and services are divided into three main categories: land, labor, and _________. a)capital b)production c)scarcity

1)services 2)capital