FREE ECONOMICS AND STUDY GAMES ABOUT

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FREE ECONOMICS AND STUDY GAMES ABOUT

ECONOMICS UNIT 1 EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -26 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: opportunity cost

Answer:

the most desirable alternative given up as the result of a decision

Question 2: labor

Answer:

the effort people devote to tasks for which they are paid

Question 3: thinking at the margin

Answer:

the process of deciding whether to do or use one additional unit of some resource

Question 4: human capital

Answer:

the knowledge and skills a worker gains through education and experience

Question 5: want

Answer:

something that people desire but that is not necessary for survival

Question 6: cost/benefit analysis

Answer:

a decision-making process in which you compare what you will sacrifice and gain by a specific action

Question 7: scarcity

Answer:

the principle that limited amounts of goods and services are available to meet unlimited wants

Question 8: factors of production

Answer:

the resources that are used to make goods and services

Question 9: land

Answer:

all natural resources used to produce goods and services

Question 10: goods

Answer:

the physical objects that someone produces

Question 11: "guns or butter"

Answer:

the government decision to produce more military goods or consumer goods

Question 12: production possibilities curve

Answer:

a graph that shows alternative ways to use an economy's productive resources

Question 13: production possibilities frontier

Answer:

a line on a production possibilities curve that shows the maximum possible outcome an economy can produce

Question 14: economics

Answer:

the study of how people seek to satisfy their needs and wants by making choices

Question 15: efficiency

Answer:

the use of resources in such a way as to maximize the output of goods and services

Question 16: underutilization

Answer:

the use of fewer resources than an economy is capable of using

Question 17: marginal benefit

Answer:

the extra benefit of adding one unit

Question 18: law of increasing costs

Answer:

an economic principle which states that as production shifts from making one good or service to another

Question 19: shortage

Answer:

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

Question 20: capital

Answer:

any human-made resource that is used to produce other goods and services

Question 21: trade-off

Answer:

the act of giving up one benefit in order to gain another

Question 22: entrepreneur

Answer:

a person who decides how to combine resources to create goods and services

Question 23: need

Answer:

something essential for survival

Question 24: services

Answer:

the actions or activities that one person performs for another

Question 25: marginal cost

Answer:

the extra cost of adding one unit

Question 26: physical capital

Answer:

the human-made objects used to create other goods and services