Economics Chapter 1 Review Game (Some questions may correspond with visuals in class) 1.

. What is the value or cost of a good or service that is given up by choosing one alternative over another? opportunity cost 2. What is the study of how society manages its scarce resources? economics 3. This word means that society is getting the most it can from its scarce resources? efficiency 4. What is a person paid for in exchange for capital? interest 5. What leads to too few resources to satisfy society's desires? scarcity 6. What are small, incremental adjustments to a plan of action? thinking at the margin 7. What are the four factors of production? land, labor, capital, entrepreneurs 8. What is the value of the best alternative given up when a choice is made? opportunity cost 9. What is a person paid for in exchange for labor? wages 10. What shows the input combinations that allow a country to produce a given amount of output? production possibilities frontier 11. What offers a way to visually express ideas that might be less clear if described with equations or words? graph 12. Which of the following is NOT one of the scarce resources studied? money 13. A person going to college is making an investment in what? human capital 14. What is a person paid in exchange for land? rent 15. What exist when there is less than an infinite amount of a resource or good? scarcity 16. What are resources that are made by humans and used to create other goods and services? capital 17. What one word can describe an economy that uses its resources to make the most goods and services? efficiency 18. Iron ore, natural gas, fertile soil, water are examples of which factor of production? land 19. What is it called when the government of an economy must make a decision between spending money on a hospital or spending the same amount on border security? guns or butter 20. What are resources used to make all goods and services? factors of production 21.What are the two fundamental facts which constitute the economizing problem? Full Production - Full Employment Land - Capital Unlimited needs and wants - Scarce Resources (ANS) Money Time

22. Which of the following would best satisfy a human need? newspaper automobile bread (ANS) iPod 23. What does point D represent? underutilization or inefficiency 24. Which point represents efficiency? H 25. Scarcity arises because of: poverty. finite resources. (ANS) too little money in an economy. all of the above. 26. Mr. Simpson has decided to start a new company to produce bobble-head dolls. He has hired a contractor to build his factory and a manager to run the company for him. Mr. Simpson PRIMARILY represents which factor of production? land labor entrepreneurship (ANS) capital 27. One difference between a manager and an entrepreneur is that an entrepreneur is willing to lead rather than follow. take a financial risk. (ANS) manage a large group of people. be cautious and methodical. 28. Which point is unattainable? L 29. At Point T, what is the opportunity cost of making one additional computer? 3 units of food 30. At Point R, what is the opportunity cost of making one additional unit of food? 1 computer