Question 1

People's wants are unlimited. This fact means that which of the following is always present?

Accepted Answer

Scarcity

Answer

marginal utility

Answer

shortages

Answer

costs of production

Question 2

What are the factors of production?

Accepted Answer

land, labor, and capital

Answer

goods and services

Answer

risk and opportunity

Answer

wages, salaries, and profits

Question 3

Ocean waves can be used to generate energy. Ocean waves are considered which type of resource?

Accepted Answer

perpetual

Answer

renewable

Answer

capital

Answer

non-renewable

Question 4

Which of the following is a major reason the standard of living in Japan is much higher than in Nigeria?

Accepted Answer

greater human capital

Answer

richer natural resources

Answer

more foreign residents

Answer

fewer temporary shortages

Question 5

What is the best title for the list below?

Accepted Answer

Entrepeneur

Answer

Capitalist

Answer

Investor

Answer

Laborer

Question 6

Which of these items is a measure of productivity?

Accepted Answer

bushels of corn per acre

Answer

years of education

Answer

number of workers employed

Answer

dollars invested in new equipment

Question 7

Why are tradeoffs necessary?

Accepted Answer

Resources are limited.

Answer

Advertisers promote products.

Answer

People want different things.

Answer

Every product has flaws.

Question 8

When Amy returns a good library book without finishing it so she won't have to pay a late fee, what is her opportunity cost?

Accepted Answer

finishing the book

Answer

paying the fee

Answer

reading a different book

Answer

paying for something else

Question 9

What does it mean to maximize utility?

Accepted Answer

to gain the most satisfaction possible

Answer

to become as efficient as possible

Answer

to strengthen a national infrastructure

Answer

to strengthen the skills of a workforce

Question 10

Which scenario best illustrates the law of diminishing marginal utility?

Accepted Answer

A new toy is less exci(ng to a child with many toys than to a child with just a few.

Answer

Someone who doesn't listen to music does not care about getting a new CD

Answer

A collector of china figurines is eager to get a new one.

Answer

A car breaks down more often as it gets older.

Question 11

Goods are

Accepted Answer

physical objects produced for sale.

Answer

things produced for the betterment of all people.

Answer

our desires for things that meet our needs.

Answer

activities done for us by others.

Question 12

Our wants are

Accepted Answer

unlimited.

Answer

equal to our resources.

Answer

scarce.

Answer

in short supply.

Question 13

What causes a shortage?

Accepted Answer

a temporary increase in demand for a particular good or service

Answer

the permanent condition of having too few resources to satisfy all wants

Answer

an increase in the production of goods

Answer

the discovery of new sources of supplies for goods

Question 14

Why do economists say that scarcity is everywhere?

Accepted Answer

The resources needed to produce goods and services are insufficient to meet the demand for them.

Answer

the time and effort people devote to producing goods and services

Answer

the money used to invest in order to produce future wealth

Answer

Most people never have enough resources to meet their basic daily needs.

Question 15

What do economists mean when they use the word "land"?

Accepted Answer

natural resources used to produce goods and services

Answer

real estate containing buildings where goods and services are produced

Answer

analyze the benefits and consequences of their decisions.

Answer

measure efficiency with the production of luxury goods.

Question 16

What is one way that a business can raise its productivity?

Accepted Answer

get more outputs from the same inputs

Answer

get less output from more inputs

Answer

get the same output with the same inputs

Answer

get less output from the same inputs

Question 17

Which statement about a country's human capital is true?

Accepted Answer

A country with high human capital is a wealthier nation.

Answer

A nation's human capital is the least important form of capital in creating wealth and growth.

Answer

There is no correlation between a country's human capital and its standard of living.

Answer

The lower the level of human capital, the richer the nation will be.

Question 18

To an economist, the word capital includes

Accepted Answer

the tools, machines, and buildings used in the production of other goods and services.

Answer

the time and effort people devote to producing goods and services.

Answer

the natural resources used to produce goods and services.

Answer

the money used to invest in stocks, bonds, real estate, or businesses to produce future wealth.

Question 19

What do we do when we maximize the utility of our decisions?

Accepted Answer

We make the decisions that we expect will make us better off.

Answer

We make the easiest choice, regardless of whether it will benefit us at all.

Answer

We make the decisions that will only give us pleasure.

Answer

We make decisions that decrease our standard of living.

Question 20

In the classic guns-versus-butter tradeoff, what happens when a society chooses to produce guns (military goods) instead of butter (civilian goods)?

Accepted Answer

The society maximizes its security, but lowers its standard of living.

Answer

The society reduces both its living standards and its security.

Answer

The society maximizes both its security and its standard of living

Answer

The society maximizes its living standards, but reduces its security.

Related quizzes

Related quizzes