Economics 12 Chapter 1 Economics 12 Chapter 1

The examination of the behavior of entire economies: A) Economics B) Microeconomics C) Macroeconomics D) Economist

C) Macroeconomics

A good or service that is necessary for survival:

Need

Manufactured material used to make goods:

Capital Resource

Comic books, video games, and jewelry are NOT necessities and are examples of:

Wants

_________, who decide what to buy, are the two large groups of economic decision-makers. A) Producers B) Risk-takers C) Scarcity D) Consumers

D) Consumers

The study of the choices that people make to satisfy their needs and wants is called:

Economics

Any item readily accepted by people in return for goods and services: A) barter B) money C) distribution D) none of the above

B) Money

Entrepreneurs risk economic _______ in return for the possibility of financial gain

Failure

We must make economic choices because resources are __________.

Limited or Scarce

When human effort is used in the production process, it is called a _________ __________.

Human Resource

Which of the following could be a resource? A) Trees B) Sunlight C) Bicycles D) All of the above

D. All of the above

Consumers choose what to? A) Sell B) Buy C) Provide D) Save

B. Buy

True or False Efficiency is the use of the smallest amount of resources to produce the greatest amount of output.

True

When a business is doing well and the company is making money, the production possibilities curve will shift to the _____.

Right

An item provided by nature that can be used to produce goods and provide services:

Natural Resource

People respond to the problem of scarcity by deciding how to ___________ resources in order to satisfy the greatest number of needs and wants.

allocate or distribute

A resource is: A) The result of choices made by business firms B) The result of scarcity in the economic system C) Anything people use to make or obtain what they need or want D) A physical object that can be purchased

C. Anything people use to make or obtain what they need or want C. Anything people use to make or obtain what they need or want

When a car is used to deliver pizzas, the car is considered a: A) Consumer good B) Capital good C) Finished product D) Technological resource

B. Capital Good

An action or activity done for others for a fee:

Service

The value of the next best alternative given up to obtain an item:

Opportunity Cost

An entrepreneur is a (n) A) Risk-taker B) Inventor C) Efficiency specialist D) Computer expert

A. Risk-Taker

You are in the clothing store. You see a pair of pants and a T-shirt that you like, however, you have only enough money for one item of clothing. You decide to buy the pants. What is the opportunity cost of your choice? A) The T-shirt B) The cost of both items of clothing C) The price of the pants D) The difference between the prices of the pants and the T-shirt

A. The T-shirt

A production possibilities curve illustrates all the: A) Technological changes that help to increase production B) Choices a person can make between items C) Economic choices a society can make D) Combination of two goods or services that can be produced

D. Combination of two goods or services that can be produced

When new technology is introduced, the production possibilities curve will shift. A) To the right B) To the left C) It goes upward D) It goes downward

A. To the right

If an important resource, such as oil, becomes unavailable, the production possibilities curve will shift…….. A) To the right B) To the left C) It goes upward D) It goes downward

B. To the left

_________ is the study of economic factors such as households, companies, and individual markets.

Microeconomics

Give three examples of a need…

Answers will vary: Answers will vary: food, clothing, shelter, H2O food, clothing, shelter, H2O

The purpose of money is to serve as a: A) Medium of exchange B) Store of value C) Measure of value D) All of the above

D. All of the above

People are forced to make decisions about how to use resources effectively because: A) Exchange depends on mutual satisfaction B) Allocation is a requirement of satisfaction C) Resources are limited and wants are unlimited D) Satisfying needs and wants requires thought

C. Resources are limited and wants are unlimited

Consumer goods are: A) Finished products B) The goods and services that people buy C) Manufactured resources D) A and B

D. A and B

A building structure, machinery, or tools used in the production process is called ______ ________.

Capital Good or Capital Resource

True or False: Scarcity requires people to make decisions about how to use resources effectively.

True

Someone who studies economics is called an ______________.

Economist

The resources that are used to make goods and services:

Factors of Production

A situation in which consumers want more of a good or service than producers are willing to make available at a particular price:

Shortage

The actions or activities that one person performs for another:

Service

A phrase expressing the idea that a country that decides to produce more military goods has fewer resources to produce consumer goods:

“guns and butter”

The alternative that we give up when we choose one course of action over another: A) Thinking at the Margin B) Marginal Cost C) underutilization D) Trade-off

D) Trade-off

The process of deciding how much more or less to do: A) Thinking at the Margin B) Marginal Cost C) underutilization D) Trade-off

A) Thinking at the Margin

The use of fewer resources than an economy is capable of using: A) Thinking at the Margin B) Marginal Cost C) underutilization D) Trade-off

C) underutilization

An economic principle which states that as production shifts from making one good or service to another, more resources are needed to increase production of the second good or service: A) law of increasing costs B) production possibilities curve C) marginal benefit D) efficiency

A) Law of Increasing Costs

A decision making process in which you compare what you will sacrifice and gain by a specific action: A) cost/benefit analysis B) production possibilities curve C) physical capital D) marginal benefit

A) cost/benefit analysis

The cost of producing one more unit of a good:

Marginal Cost

Last Question : Anything that people use to make what they need or want is called a ____________.

Resource