Principles of Economics Version 3.0 3rd Edition Rittenberg | Test Bank 2025/2026 | Full Pack Solutions & Instant Download

Principles of Economics Version 3.0
3rd Edition Rittenberg | Test Bank
2025/2026 | Full Pack Solutions &
Instant Download
© 2017 FlatWorld
Chapter 2: Confronting Scarcity: Choices in Production
Multiple Choice
1. Economic resources used in the production process are called:
A)
free gifts of the natural environment.
B)
factors of production.
C)
consumer items.
D)
money capital.
Ans:
B
Difficulty: Easy
2. An economic system is the set of rules that define _______ and _______.
A)
resources; prices
B)
who gets to vote; when elections will be held
C)
market prices; factors of production
D)
how an economy's resources are to be owned; how decisions about the resources are to be
made
Ans:
D
Difficulty: Medium
3. The model that shows the goods and services the economy is capable of producing is the
model of:
A)
utility.
B)

,the fallacy of composition.
C)
production possibilities.
D)
scarcity.
Ans:
C
Difficulty: Easy
4. Factors of production are:
A)
the resources the economy has available to produce goods and services.
B)
generally unlimited in modern economies.
C)
always employed in modern economies.
D)
the knowledge that can be applied to the production of goods and services.
Ans:
A
Difficulty: Easy
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5. The three broad types of factors of production are:
A)
capital, labor, and natural resources.
B)
money, profit, and interest.
C)
stocks, bonds, and financial assets.
D)
technology, human capital, and comparative advantage.
Ans: A
Difficulty: Easy
6. The three broad types of resources used to produce goods and services are also known
as:
A)
economic systems.
B)
factors of production.
C)
production possibilities.

,D)
financial capital.
Ans: B
Difficulty: Easy
7. Capital is best considered as:
A)
the natural environment.
B)
a factor of production that has been produced.
C)
financial assets.
D)
money.
Ans: B
Difficulty: Easy
8. A factor of production that has been produced for use in the production of other goods
and services is:
A)
labor.
B)
money.
C)
capital.
D)
natural resources.
Ans: C
Difficulty: Easy
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Edition Rittenberg
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© 2017 FlatWorld
9. Labor is the _____ that can be applied to production.
A)
the natural environment.
B)
produced resources.
C)
financial assets.
D)
human effort.
Ans: D
Difficulty: Medium
10. Any factor of production is capital if it:

, A)
was produced and can be used to produce other goods and services.
B)
generates utility.
C)
uses human effort to produce goods and services.
D)
is included in financial capital.
Ans: A
Difficulty: Medium
11. The factors of production are:
A)
money, labor, natural resources, and capital.
B)
technology, human capital, and natural resources.
C)
money, capital, and natural resources.
D)
labor, capital, and natural resources.
Ans: D
Difficulty: Easy
12. A factor of production that is produced in order to produce something else is called:
A)
money.
B)
labor.
C)
technology.
D)
capital.
Ans: D
Difficulty: Easy
13. Human effort that can be applied in the production process is called:
A)
natural resources.
B)
technology.
C)
labor.
D)
specialization.
Ans: C
Difficulty: Easy