Question 1

Printing presses,forklifts and assembly plants are examples of which factor of production?
A)physical capital
B)human capital
C)entrepreneurship
D)labor

Accepted Answer

Printing presses, forklifts, and assembly plants are all examples of physical capital, which refers to the tools, equipment, and infrastructure used in the production process.

Question 2

Economics is the study of:
A)how to invest in the stock market.
B)how society uses limited resources.
C)the role of money in markets.
D)how government officials decide which goods and services are produced.

Accepted Answer

Economics is the social science that studies how individuals, businesses, governments, and societies make choices about how to allocate scarce resources to satisfy their unlimited wants and needs. Therefore, the study of economics is centered around how society uses its limited resources. The other options, such as investing in the stock market, the role of money in markets, and government decisions on goods and services, can be studied in economics but are not the primary focus.

Question 3

Markets perform all of the following functions EXCEPT:
A)determining the prices of goods and services.
B)helping firms decide what to produce.
C)helping firms decide how to produce.
D)determining why a firm chooses to produce a certain product.

Accepted Answer

Markets do not determine why a firm chooses to produce a certain product. This decision is usually based on factors such as the firm's capabilities, resources, industry trends, and consumer demand. However, markets do play a role in determining which products are successful and profitable for the firm to produce.

Question 4

In a modern market economy,most of the answers to the questions of what to produce,how to produce it,and who should get the production are made by:
A)governments.
B)individuals.
C)firms.
D)both B and C.

Accepted Answer

In a modern market economy, most of the answers to the questions of what to produce, how to produce it, and who should get the production are made by individuals and firms, not by governments. Individuals decide what goods and services they want to consume and the firms respond to this demand by producing those goods and services. The government usually plays a role in regulating the market to ensure fair competition and protect consumers, but it does not make the primary decisions about production and consumption.

Question 5

________ is a situation in which resources are limited in quantity and can be used in different ways.
A)Choice
B)Scarcity
C)Economics
D)Supply and demand

Accepted Answer

Scarcity is a situation in which resources are limited in quantity and can be used in different ways.

Question 6

Which of the following is NOT a key economic question?
A)What products to produce?
B)Who produces the products?
C)How to produce the products?
D)Who gets the produced products?

Accepted Answer

The three key economic questions that every society must answer are: What to produce? How to produce? And for whom to produce? The question of "Who produces the products?" is not considered a key economic question in the context of these fundamental economic decisions.

Question 7

Which of the following is NOT a market?
A)an online electronic auction
B)a group of paving contractors bidding for a road construction contract
C)ticket scalpers selling tickets outside a sold-out sports event
D)All of the above are markets.

Accepted Answer

All of the options given represent some form of exchange of goods or services between buyers and sellers, making them all markets.

Question 8

Which of the following is NOT a market?
A)a group of children trading Pokemon cards
B)a cattle auction
C)your college bookstore
D)All of the above are markets.

Accepted Answer

All of the options listed are considered markets because they involve the exchange of goods or services between buyers and sellers.

Question 9

Because resources are limited:
A)only the very wealthy can get everything they want.
B)firms will be forced out of business.
C)the availability of goods will be limited but the availability of services will not.
D)people must make choices.

Accepted Answer

Since resources are limited, people must make choices about how to allocate them. This means that they must decide which goods and services to produce and consume, and how much of each to produce and consume. Without making choices, resources would be wasted, and the economy would not function efficiently. Therefore, option D is the best choice.

Question 10

An economic model is:
A)a small but completely working economy.
B)a simplified representation of an economic environment.
C)any graph.
D)all of the above.

Accepted Answer

An economic model is a simplified representation of an economic environment. It is not necessarily a small but completely working economy, nor is it limited to just a graph.

Question 11

In which of the following markets is a person's time and effort exchanged for money?
A)consumer market
B)capital market
C)labor market
D)goods market

Accepted Answer

The labor market is where people exchange their time and effort for money through employment or self-employment. The consumer market involves buying and selling goods and services, the capital market involves buying and selling financial assets, and the goods market involves buying and selling physical goods.

Question 12

Which of the following is an example of scarcity?
A)If you choose to play video games you will not have as much time for exercise.
B)If a city uses an acre of land to build a park there will be less land for houses.
C)If I decide to buy a new car I may not have enough money to go away on vacation this year.
D)All of the above are examples of scarcity.

Accepted Answer

All of the options listed involve a limited amount of resources or choices and require trade-offs or decisions to be made, which is the essence of scarcity. In option A, time is a limited resource, and choosing one activity means sacrificing the opportunity to engage in another. In option B, the available land is limited, and using it for one purpose means it cannot be used for others. In option C, money is limited, and choosing to spend it on one item or experience means sacrificing the opportunity to spend it on something else.

Question 13

Economics is best defined as the study of:
A)financial decision-making.
B)how consumers make purchasing decisions.
C)choices made by people faced with scarcity.
D)inflation,unemployment,and economic growth.

Accepted Answer

Economics is the study of how people make choices when faced with limited resources and unlimited wants. This concept is known as scarcity, and it is at the core of economics. Financial decision-making and purchasing decisions are both part of economics, but they are not the main focus. Inflation, unemployment, and economic growth are important topics in economics, but they are not a comprehensive definition.

Question 14

When Bob,a recent college grad,took an internship at an accounting firm,he is accumulating which factor of production?
A)physical capital
B)human capital
C)entrepreneurship
D)natural resources

Accepted Answer

Bob, as a recent college grad, represents human capital, which is the knowledge, skills, and abilities that an individual possesses and contributes to the production process.

Question 15

Resources are all of the following EXCEPT:
A)unlimited and in abundance.
B)the things we use to produce goods and services.
C)limited in quantity and can be used in different ways.
D)scarce and therefore requiring choices to be made.

Accepted Answer

Resources are not unlimited and in abundance, they are limited and scarce.

Question 16

The factors of production include:
A)natural resources.
B)labor.
C)entrepreneurship.
D)all of the above.

Accepted Answer

All three factors of production- natural resources, labor, and entrepreneurship- are necessary for the production of goods and services in any economy. Natural resources provide the raw materials to be used, labor provides the human effort needed to transform those raw materials into finished products, and entrepreneurship combines these resources to create value and generate profits. Therefore, D (all of the above) is the best choice.

Question 17

Scarcity can best be defined as a situation in which:
A)there are no buyers willing to purchase what sellers have produced.
B)there are not enough goods to satisfy all of the buyers demands.
C)resources are limited in quantity and can be used in different ways.
D)there is more than enough money to satisfy consumers wants.

Accepted Answer

The answer of Scarcity can best be defined as a...

Question 18

The effort used to coordinate the factors of production and produce goods and services is called:
A)entrepreneurship.
B)capital accumulation.
C)land ownership.
D)land.

Accepted Answer

Entrepreneurship refers to the effort used to coordinate the factors of production and produce goods and services.

Question 19

Which of the following is NOT a factor of production?
A)money
B)human capital
C)physical capital
D)labor

Accepted Answer

Money is not considered a factor of production, but rather a medium of exchange used to acquire the factors of production (such as labor, physical and human capital). The factors of production are resources used to produce goods and services, and include labor, physical capital (machinery, tools, etc.), and human capital (knowledge, skills, education, etc.).

Question 20

An arrangement that allows buyers and sellers to exchange things is called:
A)a contract.
B)a market.
C)money.
D)efficient.

Accepted Answer

A market is a platform where buyers and sellers come together to exchange goods, services, or resources.

Quiz 1: Introduction: What Is Economics

Printing presses,forklifts and assembly plants are examples of which factor of production?

Economics is the study of:

Markets perform all of the following functions EXCEPT:

In a modern market economy,most of the answers to the questions of what to produce,how to produce it,and who should get the production are made by:

________ is a situation in which resources are limited in quantity and can be used in different ways.

Which of the following is NOT a key economic question?

Which of the following is NOT a market?

Which of the following is NOT a market?

Because resources are limited:

An economic model is:

In which of the following markets is a person's time and effort exchanged for money?

Which of the following is an example of scarcity?

Economics is best defined as the study of:

When Bob,a recent college grad,took an internship at an accounting firm,he is accumulating which factor of production?

Resources are all of the following EXCEPT:

The factors of production include:

Scarcity can best be defined as a situation in which:

The effort used to coordinate the factors of production and produce goods and services is called:

Which of the following is NOT a factor of production?

An arrangement that allows buyers and sellers to exchange things is called: