Test 1

Question 1

Physical location where materials are install and workers use laboring skills.

Answer 1

Plant

Question 2

Having to deal with having unlimited wants, yet limited resources

Answer 2

Scarcity

Question 3

Resource in the form of human labor

Answer 3

Human Resources

Question 4

Resource in the form of natural resources (land, minerals, forest, etc.)

Answer 4

Natural Resources

Question 5

Resource in the form of machinery, tools, and other types of equipment

Answer 5

Capital Resources

Question 6

Deals with what is, what was, and what will be. It has no value judgement

Answer 6

Positive Statements

Question 7

Ceteris Paribus

Answer 7

“All other things held constant”

Question 8

What you give up when you make a decision

Answer 8

Opportunity cost

Question 9

60% of an household income are made up of this…

Answer 9

Wages and salaries

Question 10

Social security, food stamps, and other benefits are examples of this.

Answer 10

Transfer payments

Question 11

Deals with ownership of a plant

Answer 11

The Firm

Question 12

Businesses owned by a single owner or even a single family.

Answer 12

Sole Proprietorship

Question 13

Businesses owned by two or more people. most common in law, accounting, and medical.

Answer 13

Partnership

Question 14

This type of firm makes up 70% or American business, but only 4% of American business profit.

Answer 14

Sole Proprietorship

Question 15

This type of firm is made up of only 18.5% of American business, yet 81% of American business profit.

Answer 15

Corporations

Question 16

This type of firm has limited liability

Answer 16

Corporations

Question 17

Products that consumers buy together Ex.) Peanut butter and Jelly

Answer 17

Complement Products

Question 18

Products that are in competition with each other and consumers decide to buy either one product or the other

Answer 18

Substitude Products