5 Written Questions
5 Matching Questions
- Guns or butter
- Factors of Production
- Law of increasing cost
- a Land, labor, and capital; the three groups of resources that are used to make all goods and services.
- b A phrase that refers to the trade-offs that nations face when choosing whether to produce more or less military or consumer goods.
- c Ambitious leader who combines, land, labor, and capital to create and market new goods and services.
- d Law that states that as we shift factors of production from making one good or service to another, the cost of producing the second item increases.
- e To an economist, the alternative that is given up because of a decision.
5 Multiple Choice Questions
- The study of how people seek to satisfy their needs and wants by making choices.
- All human-made goods that are used to produce other goods and services; tools and buildings.
- The effort that people devote to a task for which they are paid.
- Natural resources that are used to make goods and services.
- A situation in which a good or service is unavailable.
5 True/False Questions
Thinking at the margin → The skills and knowledge gained by a worker through education and experience.
Capital → Limited quantities of resources to meet unlimited wants.
Production possibilities curve → A graph that shows alternative ways to use an economy's resources.
Underutilization → A situation in which a good or service is unavailable.
Services → Something like air, food, or shelter that is necessary for survival.