Fundamentals of Economics Quiz (v)

An autoworker is considered ________ and earns ________.

labor; wages

Which factor of production includes natural resources like coal, gold or oil?

land

Scarcity requires that people must

make choices.

The situation in which some necessities have little value while some non-necessities have a much higher value is known as

paradox of value.

When a consumer buys gasoline at QT, she is making a purchase in which market?

product market

The most fundamental economic problem is

scarcity

How does production possibilities frontier show an increase in production possibilities?

shifts outward or to the right

Which of the following is NOT a factor of production?

the wages paid to workers.

Which of the following is NOT a basic economic question?

where to produce

On Saturday morning, you rank your choices for activities in the following order: go to the library, work out at the gym, have breakfast with friends, and sleep late. Suppose you decide to go to the library. Your opportunity cost is

working out at the gym, having breakfast with friends, and sleeping late.

Which factor of production machines like a pizza oven or deep fryer at a restaurant?

capital

Manufactured goods needed to produce other goods and services are called

capital goods.

How can individuals improve their human capital?

completing high school, going to technical school, or attending college

When we rely on others and others rely on us to provide most of the goods and services we consume is called

economic interdependence.

Economics is best defined as the study of how people, businesses, governments, and societies

how to allocate scare resources.