Economics Quiz – Chapters 1 and 2 Review Sheet

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Economics Quiz – Chapters 1 and 2 Review Sheet
1. What is “scarcity?”
2. What is “shortage?”
3. What is the difference between scarcity and shortage?
4. Why are tradeoffs necessary/unavoidable?
5. What are the 4 factors of production?
a.
b.
c.
d.
6. Tick the box that applies
Land
Labor
Capital
Entrepreneurship
Owner of The
Washington Post
The Sun
Printing Press
7. Define “renewable resource” and “non-renewable resource”. Give an example of each.
8. What is “utility?”
9. What does it mean to “maximize utility?”
10. What does “diminishing marginal utility” mean? Can you think of an example?
(Use the graph on the right for #10 - 15)
11. Define “opportunity cost.”
12. What is the opportunity cost of moving from A to B on the graph?
13. What does “X” represent on the graph? What does “Z” represent?
14. What would cause the line to shift inward?
15. What would cause the line to shift outward?
Z
X
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