6 Written Questions
6 Multiple Choice Questions
- A factor of production used by labor in making products; a man-made instrument of production (such as a tool, machine, or sheet metal).
- The condition in the economy where wants are greater than the resources to satisfy them. The central problem in economics.
- The factor of production that takes the risks and responsibilities of starting a business; an organization that combines the other factors of production.
- A factor of production that has not been changed by people. Also called "land".
- Intangible things that satisfy human wants or needs.
- The value of the second choice that is given up when the first choice is taken.
6 True/False Questions
goods → A tool used by economists to show how different factors act and react on each other (such as a demand and supply graph; a simplified picture of the real world).
labor → A factor of production contributing human effort in the production process.
model → A tool used by economists to show how different factors act and react on each other (such as a demand and supply graph; a simplified picture of the real world).
positive statement → A statement of fact (as opposed to a statement of personal values).
economics → The study of how people produce, distribute, and consume resources in order to satisfy their wants, and of how people make choices in trying to satisfy their wants with limited resources.
production possibilities frontier → The creation of various kinds of goods and services.