ECO 252
Chapter 1 Quiz Me
Section 1.1
1. Which of the following illustrates the concept of scarcity?
a. More clean air is wanted than is available in large polluted metropolitan areas
such as Mexico City
b. There is usually more than one use of your “free” time in the evening
c. There are many competing uses for the annual budget of your city, county, or
state
d. All of the above are correct
2. The condition of scarcity
a. Cannot be eliminated
b. Prevails in poor economies
c. Prevails in rich economies
d. All of the above are correct
3. Because of scarcity,
a. It is impossible to satisfy every desire and choices must be
made
b. The available supply of time, goods, and resources is greater than human wants
c. There are no limits on the economy’s ability to satisfy unlimited wants
d. Every desire is fulfilled
4. Which of the following would eliminate scarcity as an economic problem?
a. Moderation of people’s competitive instincts
b. Discovery of new, sufficiently large energy reserves
c. Resumption of steady productivity growth
d. None of the above is correct
, Section 1.2
1. Which of the following are factors of production?
a. Resources restricted to the land, such as natural resources that are unimproved
by human economic activity
b. Just labor and capital in industrialized countries, where natural resources are no
longer used to produce goods and services
c. The outputs generated by the production process transforming land, labor, and
capital into goods and services
d. Land (natural resources), labor (human capital,
entrepreneurship), and capital (constructed inputs such as
factories)
2. Which of the following is not an example of a capital input?
a. Factories and offices where goods and services are produced
b. Tools and equipment
c. Computers used by a company to record inventory, sales, and payroll
d. A person’s skills and abilities, which can be employed to
produce valuable goods and services
3. Which of the following best describes an entrepreneur?
a. A person who works as an office clerk at a major corporation
b. A special type of capital
c. A person who combines the factors of production to produce
innovative products
d. Wealthy individuals who provide savings that stimulates the economy
4. Which of the following is true about renewable natural resources?
a. They are a type of land resource (for example, forests,
rangelands, and marine fisheries) that naturally regenerate
and thus can tolerate a sustained harvest but can be
depleted from excessive harvest
b. They are a type of land resource (for example, oil, coal, and natural gas) that
has a fixed stock
c. They are a type of capital resource (for example, air filtration systems in
buildings) that renew and refresh polluted air from the outside
d. They are a type of capital resource (for example, irrigation networks and
wastewater treatment plants) that utilize water
Chapter 1 Quiz Me
Section 1.1
1. Which of the following illustrates the concept of scarcity?
a. More clean air is wanted than is available in large polluted metropolitan areas
such as Mexico City
b. There is usually more than one use of your “free” time in the evening
c. There are many competing uses for the annual budget of your city, county, or
state
d. All of the above are correct
2. The condition of scarcity
a. Cannot be eliminated
b. Prevails in poor economies
c. Prevails in rich economies
d. All of the above are correct
3. Because of scarcity,
a. It is impossible to satisfy every desire and choices must be
made
b. The available supply of time, goods, and resources is greater than human wants
c. There are no limits on the economy’s ability to satisfy unlimited wants
d. Every desire is fulfilled
4. Which of the following would eliminate scarcity as an economic problem?
a. Moderation of people’s competitive instincts
b. Discovery of new, sufficiently large energy reserves
c. Resumption of steady productivity growth
d. None of the above is correct
, Section 1.2
1. Which of the following are factors of production?
a. Resources restricted to the land, such as natural resources that are unimproved
by human economic activity
b. Just labor and capital in industrialized countries, where natural resources are no
longer used to produce goods and services
c. The outputs generated by the production process transforming land, labor, and
capital into goods and services
d. Land (natural resources), labor (human capital,
entrepreneurship), and capital (constructed inputs such as
factories)
2. Which of the following is not an example of a capital input?
a. Factories and offices where goods and services are produced
b. Tools and equipment
c. Computers used by a company to record inventory, sales, and payroll
d. A person’s skills and abilities, which can be employed to
produce valuable goods and services
3. Which of the following best describes an entrepreneur?
a. A person who works as an office clerk at a major corporation
b. A special type of capital
c. A person who combines the factors of production to produce
innovative products
d. Wealthy individuals who provide savings that stimulates the economy
4. Which of the following is true about renewable natural resources?
a. They are a type of land resource (for example, forests,
rangelands, and marine fisheries) that naturally regenerate
and thus can tolerate a sustained harvest but can be
depleted from excessive harvest
b. They are a type of land resource (for example, oil, coal, and natural gas) that
has a fixed stock
c. They are a type of capital resource (for example, air filtration systems in
buildings) that renew and refresh polluted air from the outside
d. They are a type of capital resource (for example, irrigation networks and
wastewater treatment plants) that utilize water
