The factors of production

 

1. The need to make choices arises because

A – some things are not limited.

B – shortages are a constant situation

C – everything that exists is limited.

D – people need to share their resources.

 

2. The four factors of production are the resources of land, labor, capital and

A – productivity.

B – entrepreneurship.

C – technology.

D – services.

   

3. The human effort directed towards producing goods and services is known 

as

A – labour.

B – goods.

C – capital.

D – technology.

 

4. What do we call the advance in knowledge that leads to new and improved goods and services and better ways of producing them?

A – Capital.

B – Technology.

C – Economics.

D – Labor.

 

5. Natural resources that exist without human intervention refer to

A – labor

B – land

C – goods

D – economics

 

6. The machinery, tools and buildings humans use to produce goods and

services are called

A – capital.

B - productivity.

C – factors of production

D – tangible goods.

 

7. Which of the following does not fall within the category of land as a factor

      of production?

      A – a building

      B – trees

      C - coal

      D - water

 

8. How would you classify the factors of production shown in the pictures

below?

 

A – land

B – labour

C – capital

D – entrepreneurship

  1.   2.

 

   3.   4.

 

  5.   6.

 

 

Unit 2

 

THE TRADE-OFFS

 

1. A trade -off is

   A – a consumer choice

   B – exchanging one thing for another

   C – a given up activity

   D - the next best alternative

 

2. Trade -offs create

   A – opportunity costs.

   B - choices.

   C - scarcity.

   D – capital.

 

3. Opportunity cost is

  A – benefit given up

  B – economic profit

  C – value of the trade-off

  D – lost opportunity

 

3. What term do economists use to describe the alternative you face if you decide to do one thing instead of another?

A – measure of cost

B – opportunity cost

C – trade-off

D – economic choice

 

4. If you decide not to go to work the opportunity cost is

A – the lost wages

B - the lost time

C - the lost choice

D – the lost activity

 

5. Opportunity cost is best defined as

   A -  how much money is paid for something, taking inflation into account.

    B - how much money is paid for something.

    C -  all the alternatives that are given up to get something.

    D -  the highest-valued alternative that is given up to get something.

 

6. Suppose a country, when operating on its PPF, can produce 2 tons of butter   and 200 cars OR 3 tons of butter and 150 cars. The opportunity cost of 1 ton  of butter is

   A -  200 cars.

   B -  300 cars.

  C - 50 cars.

  D -  0.75 cars.

 

7. In the table below, the opportunity cost of the 2nd pizza is

   A - 95 cases of soda.

   B - 80 cases of soda.

   C - 0 cases of soda.

   D - 15 cases of soda.

 

                             Production possibilities

Possibility	Pizza (per hour)	Soda (cases per hour)
A	0	100
B	1	95
C	2	80
D	3	60
E	4	35
F	5	0

 

8. The different quantities of goods that an economy can produce with a given amount of scarce resources are called

  A - scarcity

  B - opportunity cost

  C – production possibilities

  D – trade-offs

 

9. In the diagram below X represents

A - an inefficient use of resources

B – the goal for the economy

C - an output level that is currently unreachable by the economy.

D – the most efficient use of resources

 

 

Unit 3