What is Economics

Giving up one alternative for another is called? A.) Underutilization B.) A trade-off C.) Human Capital D.) Efficiency

B.) Trade-off.

Using a resource in such a way as to minimize the production of goods and services is called? A.) Efficiency. B.) Underutilization. C.) Thinking at the margins. D.) Growth.

A.) Efficiency.

Each point on a production possibilities curve shows? A.) Efficient utilization of resources. B.) Underutilization of resources. C.) The potential for future growth. D.) The relationship of shortage to scarcity.

A.) Efficient utilization of resources.

The resources used to make goods a services is called? A.) Factors of production. B.) The gross national product. C.) The production of possibilities frontier. D.) Opportunity costs.

A.) Factors of production.

Economics is the study of how people? A.) Calculate their income tax. B.) Choose from limited resources to meet their needs. C.) Respond to war and drought. D.) Gain knowledge and skills from study and experience.

B.) Choose from limited resources to meet their needs.

All goods and services we produce are? A.) Expensive. B.) Scarce. C.) Recyclable. D.) Efficiently produced.

B.) Scarce

The purpose of a production possibilities graph is to? A.) Show alternative ways to use an economy's resources. B.) Show how a factory can use its workers in different ways. C.) Give engineers a new way of deciding how to build manufacturing plants. D.) Tell farmers how many watermelons to plant.

B.) Show alternative ways to use an economies resources.

Thinking at the margins means deciding about? A.) Maximizing goods and services. B.) investing with borrowed money. C.) Adding or subtracting one additional unit of some resource. D.) Increasing or decreasing technical know-how.

C.) Adding or subtracting one additional unit of some resource.

Skills and knowledge gained by a worker through education and experience are? A.) Production possibilities B.) Physical capital C.) Human capital D.) entrepreneurial

C.) Human capital.

Scarcity always exists because? A.) Machines and people are inefficient. B.) Changes have occurred in global weather patterns. C.) Our needs and wants are not limited, but our resources are limited. D.) There are more poor people than rich people.

C.) Our needs and wants are not limited, but our resources are limited.

Shortages occur when? A.) Many people are unemployed. B.) Interest rates go up. C.) People have trouble supplying the goods and services at current prices. D.) The United States imports more than it exports.

C.) People have trouble supplying goods and services at current prices

Entrepreneurs are people who? A.) Help settle labor disputes. B.) Work on the floor of the stock exchange. C.) Put together land, labor, and capital to create new businesses. D.) Produce all of a country's guns and butter.

C.) Put together land, labor, and capital to create new businesses.

Which of the following is NOT a factor of production? A.) A woman who makes a quilt B.) The cotton cloth and thread used in the quilt C.) The children whom the woman supports with her labor D.) The wood frame on which the quilt is sewn

C.) The children whom the women supports with her labor.

Which is NOT an example of capital at a book printing company? A.) The office building where the printing company is located B.) The paper on which books are printed C.) The oil used to heat the factory D.) The men and women who work in the accounting office

C.) The oil used to heat the factory.

Which is NOT capital? A.) The paint used by a house painter B.) The computer used by an accountant C.) The person whose photograph is snapped by the candid photographer D.) The state house where state government is conducted

C.) The person whose photograph is snapped by the candid photographer.

Countries often have to choose between producing military or consumer goods. This is a trade-off that economists call? A.) Export or import. B.) A free market economy. C.) Farm goods or factory goods. D.) Guns and butter.

D.) Guns and butter.

Economists refer to land, labor, and capital as the factors of production. "Land" in this context refers to natural resources. Given this definition, which of the items below is NOT "land"? A.) Water B.) Oil C.) Forests D.) Highways

D.) Highways.

A countries production possibilities will grow if it? A.) Produces more guns than butter. B.) Lowers its opportunity costs. C.) Makes more trade-offs. D.) Increases its resources

D.) Increases its resources.

If Karen gets up early and studies three hours for her test she is likely to get an A. If she sleeps in, she will probably get a C. What is the opportunity cost of sleeping in? A.) three additional hours of sleep B.) An A C.) A C D.) Three additional hours of study

D.) Three additional hours of studying.

Which of the following decisions can NOT be made at the margin? A.) Whether to spend the day on Saturday watching movies or going hiking B.) Whether to spend your two-week vacation on the shore or in town C.) Whether to order a pepperoni or a cheese pizza D.) Whether to move to Boston from Chicago

D.) Whether to move to Boston from Chicago.