Unit 1 Economics

Which are examples of goods? A. a two-bedroom house B. a sports car C. going on a vacation D. a pair of shoes E. taking driving lessons

A. A two- bedroom house B. A sports car D. A pair of shoes

Which action illustrates rational behavior? A. Making a decision after logically thinking about the choices B. Taking the first action that comes to mind C. Making a decision without thinking about the consequences D. Choosing the option with the greatest cost and the smallest benefit

A. Making a decision after logically thinking about the choices

Select all that apply. Why does scarcity exist? A. People's wants are unlimited. B. Resources are limited. C. People try to conserve.

A. People's wants are unlimited. B. Resources are limited.

Select all that apply. Select the items that describe the results of scarcity. A. There are not enough goods and services to meet everyone's wants. B. There are too many resources for producers to use. C. Using resources today means having fewer of them in the future.

A. There are not enough goods and services to meet everyone's wants. C. Using resources today means having fewer of them in the future.

Select all the items that describe advertising. A. can be in print or on the Internet B. is not meant to influence your buying decisions C. does not have to do with goods and services D. might use celebrity endorsements

A. can be in print or on the Internet D. might use celebrity endorsements

Select all the items that describe incentives. A. can be positive or negative B. can be monetary or non-monetary C. can change D. affect people's choices and behavior

A. can be positive or negative B. can be monetary or non-monetary C. can change D. affect people's choices and behavior

Select all that apply. Which factors might determine your preference for a new shirt? A. cost of the shirt B. design on the shirt C. color of the shirt D. how the shirt looks on you

A. cost of the shirt B. design on the shirt C. color of the shirt D. how the shirt looks on you

The law of diminishing utility states that as you consume more of a good, the satisfaction that you feel _____ . A. decreases B. increases C. stay the same

A. decreases

Private property can help to _____. A. encourage people to keep the their property clean and neat B. discourage people from conserving resources C. incentivize the property owner to steal resources D. incentivize the property owner to buy more

A. encourage people to keep the their property clean and neat

Productive resources are _____. A. factors that are used to make goods and services B. goods and services that consumers buy C. a social science D. types of stores

A. factors that are used to make goods and services

After James, a newly licensed driver, received his driver's license, he went for a drive. He had a great time. This incentive will most likely result in James _____. A. going driving again B. taking more driving lessons C. not driving anymore

A. going driving again

Which of the following items best describes specific kinds of producers? A. grocery store owner B. Computer shopper C. Medical Doctor D. Trial lawyer E. A person eating in a restaurant

A. grocery store owner C. medical doctor D. trial lawyer

Select the items below that describe nonrenewable resources. A. limited B. last forever C. include air and trees D. can be fossil fuels, metals, and minerals

A. limited D. can be fossil fuels, metals, and minerals

Select all that apply. Which of the following can reduce the amount you pay for a good or service? A. mail-in rebate B. sales tax C. coupon D. comparative shopping

A. mail-in rebate C. coupon D. comparative shopping

The expense of making an additional shirt is known as the _____ . A. marginal cost B. retail price C. extra utility

A. marginal cost

If the marginal benefit of an activity is greater than its marginal cost, people are better off doing _____ . A. more of the activity B. less of the activity C. same amount of the activity

A. more of the activity

A person who owned a bakery figured out that cookies were selling better than brownies. So, she took the resources that she was using to make the brownies and allocated them to making more cookies. This could happen because _____. A. resources can be used to make different goods and services B. the baker will definitely sell all the cookies that she makes C. people will begin liking both brownies and cookies again

A. resources can be used to make different goods and services

Shari is trying to decide how she should use her cash birthday gifts. Her choices are new clothes, a concert ticket, or donating the money to her favorite charity. Shari decides to donate the money. The value given up by not choosing both the clothes and the concert ticket is called a _____ . A. trade-off B. opportunity cost C. retail price

A. trade-off

Which of these items describe natural resources? A.renewable or nonrenewable B. come from nature C. include minerals, air, and sunlight D. describe the amount of people in the workforce E. used in everything that we make

A.renewable or nonrenewable B. come from nature C. include minerals, air, and sunlight E. used in everything that we make

Which of the following best describes a consumer? A. someone who studies economics B. a person who buys goods and services C. a business owner who sells clothes

B. A person who buys goods and services

A music download costs $1.00 for one song. $1.00 is an example of _____ . A. an accounting cost B. a retail price C. a sales tax

B. a retail price

A person shuts off the lights before leaving a room. This is an example of _____. A. scarcity B. conservation C. distribution

B. conservation

Select a situation that describes the utility derived from purchasing a cell phone. A. retail price of your new cell phone B. happiness from using your new cell phone C. time and energy spent choosing your new cell phone

B. happiness from using your new cell phone

Both the quantity and quality of a workforce that makes cars describes the company's _____. A. work environment B. human capital C. capital goods D. natural resources

B. human capital

The change in the total benefit that comes from an action is the _____ . A. utility benefit B. marginal benefit C. greatest benefit

B. marginal benefit

You don't want to buy one of the new music downloads, but your friends convince you to buy it anyway. This is an example of _____. A. advertising B. peer pressure C. celebrity endorsements

B. peer pressure

You have a choice between buying a cell phone or a camera. You choose the cell phone. The cell phone represents your _____. A. need B. preference C. endorsement

B. preference

Governments cannot produce enough goods and services to satisfy everyone's wants, because _____. A. allocation methods do not work B. resources are scarce C. it costs too much money

B. resources are scarce

A cost is ________. A. something that is gained when a decision is made B. something that is given up when a decision is made C. a rational decision D. a type of benefit

B. something that is given up when a decision is made

Pam and Roger went skiing on Sunday morning, and they enjoyed their time. On Monday, they went skiing again. This time, they fell down several times. Roger injured himself and was unable to continue. After Monday, Pam and Roger would most likely want to _____. A. ski again on Wednesday and Thursday B. stop skiing, and find something else to do C. contact the ski patrol for help

B. stop skiing, and find something else to do

A company bought a piece of land. It can use this resource to build a factory or to plant crops. The company can also hold onto the land and try to resell it later for more money. The company decides to build a factory on the land. Any value given up from not choosing the other options is the _____. A. opportunity cost B. trade-off C. consequence

B. trade-off

Preferences _____. A. are influenced only by costs B. are the same for everyone C. are based on the individual

C. are based on the individual

A machine that is used to print newspapers is a _____. A. natural resource B. human capital C. capital good D. renewable resource

C. capital good

Dividing up scarce resources refers to resource _____. A. conservation B. costs C. distribution

C. distribution

A person who organizes productive resources to make goods and services is a(n) _____. A. investor B. consumer C. entrepreneur

C. entrepreneur

Scarce resources are _____. A. unlimited B. last forever C. limited

C. limited

Effective decision-making means comparing the additional costs of alternatives with the _____ . A. total costs B. diminishing utility C. marginal benefits

C. marginal benefits

The U.S. iron mines are currently located in Michigan and Minnesota. The U.S. is one of the largest consumers of steel. According to the five economic principles, it makes good economic sense to_____. A. sell the iron ore to the highest bidder B. ship the ore to India, where labor is super cheap C. open a steel mill near Detroit, Michigan, where there are a lot of skilled laborers D. stop producing steel and iron

C. open a steel mill near Detroit, Michigan, where there are a lot of skilled laborers

A positive incentive that makes you better off is a _____. A. value B. penalty C. reward

C. reward

You have some materials, otherwise known as your resources, at home, including poster board, construction paper, markers, and colored pencils. You want to earn some extra money, and you have two choices: go into the card making business or the banner business. You choose banner making. After four days of trying to find customers, you end up with no orders. This incentive will most likely cause you to _____. A. use your resources to make banners B. not use your resources to make anything C. use your resources to make cards instead

C. use your resources to make cards instead

An opportunity cost is the _____ . A. value gained by your top choice B. value of all alternatives given up C. value of the best alternative given up

C. value of the best alternative given up

What are the three different kinds of producers?

Companies, Governments, and Nonprofit Organizations

What is an example of a need? A. the latest cell phone B. an extra pair of jeans C. another video game D. a drink of water

D. a drink of water

Maximizing satisfaction means ________. A. making a decision with the most costs B. choosing an option that gives the least happiness C. focusing only on the disadvantages of a decision D. receiving the most benefits with relatively few costs

D. receiving the most benefits with relatively few costs

A benefit is _______. A. the cost of a decision B. a disadvantage of a decision C. an in-depth study D. what is gained when a decision is made

D. what is gained when a decision is made

value regarding some other good, service, or bundle goods

Real Value

Every country or community has what?

aggregate economic behavior

Alice decided to throw her new shirt in the dryer. It shrank and no longer fit Alice. Shrinking her shirt was a ______________ of Alice's decision to use the dryer.

consequence

Rational thinking involves what?

considering something in a logical manner

In the U.S. how is the aggregate economic behavior?

consumer-driven

What are the two main groups of decision makers?

consumers and producers

What are some factors that can improve the quality of workers/human capital and help them perform their jobs better?

education, training, and good health

What are the five economic principles?

environment, resources, workforce, market demand and entrepreneurship.

What does economics look at?

how groups of people make money-related decisions

Producers use resources to what?

make goods and provide services

What does maximizing satisfaction mean?

making a decision that provides the most benefits with relatively few costs

What are the two parts in rational behavior?

maximizing and conditions

What is aggregate economic behavior?

meaning the way that the society earns and spends money

What are raw materials that are found in the environment?

natural resources

Are rational thinking and first reactions necessarily the same?

no

We track our aggregate economic behavior through what?

nominal and real data

Economics is a social science that examines the decisions made by both what?

producers and consumers

Rational thinking can result in what?

rational behavior

What are the two types of natural resources?

renewable or nonrenewable

What do social sciences study?

the interactions among people

Do consumers want to receive the most satisfaction?

yes