Chapter 1:
What Is Economics?
1.
In economics, "needs" refer to __________
a.
a good education and adequate health care.
b.
luxuries such as new televisions, computers, and VCRs.
c.
things that people do not have.
d.
the basic, minimal things people must have to survive.
2.
Scarcity of resources is always present because __________
a.
competing alternative uses for resources always exist.
b.
ceople are not willing to change their unlimited wants.
c.
we live in a world where poverty still exists.
d.
there will always be natural disasters to affect the production of goods and services.
3.
The main factors necessary for the production of goods and services are __________
a.
human resources, labor, capital, and land.
b.
labor, capital, land, and natural resources.
c.
capital, land, entrepreneurship, and labor.
d.
land, labor, capital, and services.
4.
If your city made a trade-off to spend $1 million on a recycling facility instead of a fitness and health center, the opportunity cost of a cleaner environment would be __________
a.
fewer fit and healthy people.
b.
fewer colleges and universities.
c.
less garbage to dispose of.
d.
fewer employed people.
5.
A production possibilities curve is used by economists to show __________
a.
people and businesses how much of each item to produce.
b.
the maximum combinations of goods and services that can be produced from a fixed amount of resources in a given period of time.
c.
the trade-offs and opportunity costs of producing possible combinations of goods.
d.
all of the above.
6.
Which of the following statements is NOT true about the use of economic models?
a.
Economic models cannot predict all the factors that might influence people's behavior.
b.
Economists use economic models to make value judgements about economic decisions.
c.
There may be many economic models for a particular problem.
d.
Economic models can simulate what would happen in the real world given certain economic circumstances.
7.
Economists do not all agree on the same solutions to problems because __________
a.
individual human behavior is not always predictable.
b.
they deal with facts, and the facts change.
c.
their views are dictated by their governments.
d.
they have differing opinions, beliefs, and social views.
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Unit 1
Unit 2
Unit 3
Unit 4
Unit 5
Unit 6
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Chapter 13
Chapter 14
Chapter 15
Chapter 16
Chapter 17
Chapter 18
Chapter 19
Chapter 20
Chapter 21
Chapter 22
• Chapter Overview
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• Self-Check Quizzes
• Interactive Tutor
• Texas Economy
• Web Lesson Plan
• Textbook Updates
• Teacher Forum
• Chapter Overview
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• Self-Check Quizzes
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• Texas Economy
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