Economic Concepts & Factors of Production Review

1. Economic Concepts & Factors of Production Review

2. Abisol is being pursued by Jorge, who is very rich but kind of nerdy, and Temor, who is very attractive but has no money. This is an example of? • Incentive • Choice • Consumer • Opportunity cost

3. People are forced to make choices because of this condition? • Resource • Demand • Supply • Scarcity

4. Nicholas goes to a vending machine with $1. He wants candy and a soda but can not afford both. What is his opportunity cost if he buys a soda? • $1.00 • nothing since he only has $1 • candy • not enough information

5. Which of the following would motivate you to buy a good or service? • higher tax rate • a slight increase in price • a higher opportunity cost • a “buy one, get one free” offer

6. If the demand for a product increases what will happen to the price? • It will go up • Nothing • It will go down

7. Which of the following are factors of production? • labor & time • education & capital • land & capital • experience & management

8. If the price of a product goes down what will happen to demand? • It will increase • Nothing • It will decrease

9. Tools, machinery and buildings are all part of which factor of production? • labor • land • capital • management

10. What the consumer prefers determines what is produced. • True • False • None of the above

11. Demand $$ Price $$ The dot above represents what? • supply • demand • incentive • price Supply Quantity

12. Martin makes lemonade. Sabrina drinks lemonade. Sabrina is a… • consumer • producer • opportunity cost • corporation

13. Why did the baseball player bring string with him to the game? He wanted to tie the score.