AnswersEAP-Economics and Personal Finance BUnit Test

Unit Test — Unit test Answers

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1
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The factors of production attempt to instill the idea that resources are

A
expensive.
B
scarce.
C
unlimited.
D
needed.
2
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Opportunity cost means that something needs to be

A
replenished.
B
given up.
C
ignored.
D
paid for.
3

What are the basic types of resources used by producers? Choose three answers.

A
capital
B
labor
C
value
D
scarcity
E
land
4

John has a large apple orchard. He has decided to bake pies and sell them at the local farmer’s market. Which best describes John’s use of economics?

A
John is using available and renewable resources.
B
John is relying on inexpensive labor costs to improve profits.
C
John is using resources to produce both goods and services.
D
John is assuming consumers will have limited need for his product.
5

Land is considered a resource because it

A
is always available to use.
B
is used to produce things.
C
costs little or nothing to use.
D
requires labor to be useful.
6

What is one purpose of studying economics?

A
to understand the reasons why people purchase certain goods
B
to find reasons why some resources become scarce
C
to determine the principles that explain why consumers buy services
D
to examine principles that influence the production of goods and services
7

Which of the following would be a producer?

A
someone owning a book store
B
someone shopping in a grocery store
C
someone putting gas in a car
D
someone waiting in line at a bank
8

Which of the following would be considered a nonrenewable resource?

A
sun
B
wind
C
lumber
D
petroleum
9

Which of the following is influenced by personal economic choices? Choose four answers.

A
the cost of your rent and utilities
B
the resources you have available
C
the amount of money you spend on a bus pass
D
the money you decide to spend on leisure products
E
the amount of money you put into your savings account
F
the manner in which you balance your time between work and leisure
10

Which of the following statements about opportunity cost are true?CHECK ALL THAT APPLY.

A
It exists because resources are scarce.
B
It influences consumers.
C
It influences producers.
D
It assists in anticipating profits.
E
It encourages people to spread their resources around.
11

[BLANK]

A
three
B
four
C
five
D
six
12

What is an example of goods?

A
a hotel room
B
a good haircut
C
a car wash
D
a hard cover book
13

What might happen if an economy is unable to produce wanted goods and services?

A
People will go without them.
B
People will look elsewhere for them.
C
People will stop wanting them.
D
People will focus on needs instead.
14

What type of labor force might a pottery factory want to focus on when hiring?

A
highly skilled
B
highly wealthy
C
highly educated
D
highly localized
15

Which of the following are considered needs? Choose three answers.

A
food
B
Internet
C
cell phone
D
residence
E
television
F
water

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