EC-006

Why are resources considered limited? a. there are so many that people must decide which ones to choose at any one time b. entrepreneurs do not invest enough of them c. everyone has them, and they change d. there are not enough available for everyone to have as much of them as desired

there are not enough available so that everyone can have as much of them as desired

The ultimate goal of all economic activity is a. exchange b. consumption c. production d. distribution

consumption

The heart of economics is a. resources b. trade-off c. wants d. decision making

decision making

What is the best reason for studying economics? a. to determine which occupations interest you b. to learn how to invest money and express social responsibility c. to find the best use for resources and supplies d. to prepare for effective decision making and responsible citizenship

to prepare for effective decision making an responsible citizenship

economics involves decision-making because most individuals must determine a. The cost of their non-economic wants b. how to get the most with the least c. which capital goods to buy for their use d. what occupation appeals to them

how to get the most with the least

Water and air are examples of __________ resources, while people are considered to be __________ resources. a. capital; human b. physical; mental c. natural; human d. mental; natural

natural; human

John only had $40 to spend and couldn't decide whether to buy a new pair of jeans or to go to an amusement park. He finally decided to spend his money on the amusement park. What was the opportunity cost of his decision? a. trip to amusement park b. no opportunity cost was involved c. new pair of jeans d. $40

new pair of jeans

Friendship would be considered a(n) __________ want. a. noneconomic b. economic c. unlimited d. limited

noneconomic

when a choice is made about the best use of resources, the alternative that is given up is called the ____ of that choice a. scarcity b. opportunity cost c. economic want d. trade off

opportunity cost

In order for consumption to occur, goods and services must be a. exchanged b. produced c. improved d. specialized

produced

Distribution examines how income is divided between a. producers and resource owners b. producers and economizers c. consumers and producers d. consumers and resource owners

producers and resource owners

which of the following factors has an influence on the monetary value of resources: a. opportunity b. productivity c. prosperity d. diversity

productivity

which of the following is an economic activity: a. purchasing a candy bar b. following the stock market c. Reading a bank statement d. balancing a checkbook

purchasing a candy bar

Consumers are typically most willing to pay more for goods and services that bring them greater a. trade-offs b. popularity c. satisfaction d. opportunity costs

satisfaction

Limited resources are those that are a. easily replaced b. scarce c. abundant d. unnecessary

scarce

The gap between unlimited desires for products and limited resources is known as a. Conversation b. abundance c. unemployment d. scarcity

scarcity

A manager is willing to accept the production of fewer products as long as her workers produce higher quality products. The manager is making a(n): a. trade-off b. exchange c. capital good d. distribution

trade-off

What group of words best describes wants? a. unlimited, unchanging, and compensating b. limited, changing, and compensating c. limited, unchanging, and competing d. unlimited, changing, and competing

unlimited, changing, and competing

What are the three basic economic questions? a. where will products be produced, when will products be produced, and what products will be produced b. when will products be produced, how will products be produced, and how will products be allocated c. what products will be produced, how will products be produced, how will products be allocated d. when will products be produced, what products will be produced, and how will products be allocated

what products will be produced, how will products be produced, and how will products be allocated?

A gap between unlimited wants and limited resources creates a. wants b. economic c. scarcity d. resources

scarcity

Seeing a movie at a theatre would be considered a(n) __________ want. a. limited b. noneconomic c. economic d. unlimited

economic

The desire for an item that has monetary value is a(n) ___ want a. economic b. non-economic c. unlimited d. intangible

economic

Into what two categories can wants be divided? a. unlimited and limited b. unlimited and economics c. unlimited and noneconomic d. economic and noneconomic

economic and noneconomic

The study of how to meet unlimited wants with limited resources is a. distribution b. economics c. management d. marketing

economics

Michelle is trying to decide which goods and services to purchase so that she can get maximum satisfaction. Michelle is a. increasing distribution b. creating scarcity c. economizing d. a producer

economizing

marketing the best use of limited economic resources is called a. growth b. scarcity c. stabilizing d. economizing

economizing

What do consumers, producers, and the owners of resources do with money payments to create a flow of resources, goods, services, and money payments? a. distribute b. produce c. consume d. exchange

exchange

Two factors involved in determining the value of a resource, good, or service are a. availability and trade-offs b. demand and desires c. availability and demand d. productivity and opportunity costs

availability and demand

In economics, capital goods include a. labor and management b. buildings and equipment c. trees and water d. mental and physical

buildings and equipment

Justin is trying to decide whether he wants to spend a $50 birthday check on a new DVD player or tickets to a concert. If he chooses the DVD player, what is the opportunity cost of this decision? a. concert tickets b. $50 c. birthday check d. DVD player

concert tickets