1
Chapter review Multiple-choice questions
3
A
all resources are finite.
B
people must make choices.
C
people’s wants are limited.
D
there are no free goods.
Which is the best description of the economic problem? A
limited wants, limited resources
B
limited wants, unlimited resources
C
unlimited wants, limited resources
D
unlimited wants, unlimited resources
Which is not a factor of production? A
4
5
7
8
B
machinery
C
money
D
workers
D
water
Which is an example of a free good? A
air
B
healthcare
C
roads
D
waste collection
Which is a finite good? A
6
land
copper
B
fish
C
trees
Which is an opportunity cost of a person choosing to spend $30 of birthday money on a pair of shoes? A
buying a new car
B
spending the day with friends
C
the cost of a meal at a restaurant
D
working an extra two hours at work
Which positions on the production possibility diagram on the right are attainable? A
ABC
B
BCD
C
CDA
D
DAB
Which position on the production possibility diagram on the right shows that the economy is inefficient? A
A
B
B
C
C
D
D
B
D
A
C
0
Capital goods
B
Consumer goods
2
Scarcity in an economy means that:
Consumer goods
1
A
D C
0
Capital goods
Chapter review
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