Economics Chapter 1 Section 1 Review (NOT and assignment)

Transcription

1 Name: Class: Date: ID: A Economics Chapter 1 Section 1 Review (NOT and assignment) Matching a. goods e. land b. economics f. capital c. shortage g. services d. labor h. human capital 1. when consumers want more of a good or service than producers are willing to offer at a particular price 2. physical objects such as baseballs or umbrellas 3. the study of how people make decisions to satisfy their needs and wants 4. the effort that a person devotes to a task for which the person is paid 5. all natural resources used to produce goods and services 6. knowledge gained from education and experience Multiple Choice Identify the choice that best completes the statement or answers the question. 7. What is the difference between a shortage and a scarcity? a. A shortage can be temporary or long-term, but scarcity always exists. b. A shortage results from rising prices; scarcity results from falling prices. c. A shortage is a lack of all goods and services; scarcity concerns a single item. d. There is no real difference between a shortage and a scarcity. Main Ideas Directions: Write the letter of the correct answer in the blank provided. 8. Which of the following is an example of a shortage? a. Water cannot be used to irrigate one crop because it is used for another. b. Kumquats are not available because few people want to buy them. c. A type of doll is not available because a limited number were made. d. Workers are not available because they have other jobs. 9. All goods and services are scarce because a. some goods cost more than others. b. resources are limited. c. things are either needs or wants. d. greedy people want too many goods. 10. Scarcity requires that people make trade-offs because a. people have more wants than needs. b. there is a limited supply of resources. c. services are more available than goods. d. producers rarely make enough of a good. 2

2 Name: ID: A 11. Which of the following people is an entrepreneur? a. a person who earns a lot of money as a singer or dancer b. a person who creates a game and sells it to a game manufacturer c. a person who starts an all-organic cleaning supplies business that employs others d. a person who works as a highly-paid computer programmer 12. One example of an entrepreneur is a. a writer who is hired by a film studio to adapt a novel into a screenplay. b. a secretary in a law firm that specializes in business law. c. an ice skater who is part of a professional ice show. d. an artist who runs a business painting murals in office buildings and restaurants. 13. Which of the following lists of factors of production would an economist categorize as land? a. factories, office buildings, assembly lines, workers b. farm fields, tractors, pesticides, fertilizers c. dams, bridges, rock quarries, oil wells d. iron ore, natural gas, fertile soil, water 14. Which of the following is an example of using physical capital to save time and money? a. hiring more workers to do a job b. building extra space in a factory to simplify production c. switching from oil to coal to make production cheaper d. lowering workers wages to increase profits 15. Which of the following are factors of production? a. capital and land b. scarcity and shortages c. technology and productivity d. economics and business decisions 16. A factory building is an example of which factor of production? a. human capital b. physical capital c. land d. labor 17. Which of the following is an example of a firm trying to increase its human capital? a. building a company cafeteria b. hiring more part-time workers c. paying for employees education d. leasing cars for employees 18. The physical capital used by a woodworker to make furniture would include a. saws and drills. b. trees and oil. c. hard work and time. d. a workshop and money. 2

3 Name: ID: A 19. Human capital includes a. the salary paid to an accountant. b. the knowledge a taxi driver has of the city streets. c. the machinery run by a seamstress to weave cloth. d. the equipment used by a doctor to cure a patient. Short Answer 20. In your own words, describe what entrepreneurs do. 3

4 ID: A Economics Chapter 1 Section 1 Review (NOT and assignment) Answer Section MATCHING 1. ANS: C PTS: 2 DIF: L3 REF: A.3 STA: G.2 TOP: Economic Systems Shortage 2. ANS: A PTS: 2 DIF: L3 REF: A.3 STA: G.2 TOP: Economic Systems Goods 3. ANS: B PTS: 2 DIF: L3 REF: A.4 STA: G.2 TOP: Economic Systems Economics 4. ANS: D PTS: 2 DIF: L3 REF: A.5 TOP: Economic Systems Labor 5. ANS: E PTS: 2 DIF: L3 REF: A.5 OBJ: Identify the constitutional protections that underlie free enterprise. STA: B.1 B.2 TOP: Economic Systems Land 6. ANS: H PTS: 2 DIF: L3 REF: A.6 TOP: Economic Systems Human Capital MULTIPLE CHOICE 7. ANS: A Unlike shortages, scarcity always exists. PTS: 3 DIF: L3 REF: A.4 STA: G.2 TOP: Economic Systems Scarcity vs. Shortage 8. ANS: C A shortage occurs when consumers want more of a good or service than producers are willing to make available at a particular price. PTS: 3 DIF: L3 REF: A.4 STA: G.2 TOP: Economic Choices Shortages 9. ANS: B People s wants are unlimited, but resources to make goods and services to fulfill those wants are always limited. PTS: 3 DIF: L3 REF: A.4 OBJ: Explain how scarcity affects the factors of production STA: G.2 TOP: Economic Choices Scarcity and Choice 1

5 ID: A 10. ANS: B Scarcity exists because all resources are limited. PTS: 5 DIF: L4 REF: A.4 STA: G.2 TOP: Economic Choices Scarcity 11. ANS: C Entrepreneurs start their own businesses. PTS: 3 DIF: L3 REF: A.5 OBJ: Describe what entrepreneurs do NAT: STA: F.7 TOP: Economic Systems Entrepreneurs 12. ANS: D Entrepreneurs are people who decide how to combine resources to create new goods and services. Anyone who opens a business, like the artist, is an entrepreneur. PTS: 3 DIF: L3 REF: A.5 OBJ: Describe what entrepreneurs do NAT: STA: F.7 TOP: Economic Choices Entrepreneurs 13. ANS: D Economists use the term land to refer to all natural resources used to produce goods and services. PTS: 3 DIF: L3 REF: A.5 TOP: Economic Choices Land 14. ANS: B Physical capital includes buildings, such as a factory. TOP: Economic Systems Physical Capital 15. ANS: A The factors of production are land, labor, and capital. TOP: Economic Systems Factors of Production 16. ANS: B Human-made objects used to create other goods and services are physical capital. TOP: Economic Choices Capital 17. ANS: C Education increases skills and thereby increases human capital. OBJ: Explain how scarcity affects the factors of production STA: G.2 TOP: Economic Choices Human Capital 2

6 ID: A 18. ANS: A Human-made objects used to create other goods and services are physical capital. TOP: Economic Choices Capital 19. ANS: B Human capital is defined as the knowledge and skills a worker gains through education and experience. TOP: Economic Choices Capital SHORT ANSWER 20. ANS: Possible response: They take risks to start new businesses or develop new methods of doing things that help boost the economy. They gather the factors of production. PTS: 5 DIF: L3 REF: A.5 OBJ: Describe what entrepreneurs do NAT: STA: F.7 TOP: Economic Choices Entrepreneurs 3