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