Economics Test 1 Answers

------------------------------------------------- Review Assessment: Chapter 1 Quiz (Due January 29, 2012) Status | Completed | Score | 75 out of 100 points | Instructions | | |

Question 1 | 0 out of 2 points | | The following multiple-choice question requires critical thinking about In the News and World View articles that appeared in the text. One World View article is titled "Food Shortages Plague N. Korea." On a production-possibilities curve between private and public goods, a decrease in military spending in an effort to increase food production could be represented as: | | | | | | Feedback: | The movement represents resources being pulled from one industry and allocated into the other industry. | | | | |

Question 2 | 2 out of 2 points | | Which of the following is not one of the three core economic issues that must be resolved? | | | | | | Feedback: | Resources are not unlimited. | | | | |

Question 3 | 2 out of 2 points | | The fundamental problem of economics is: | | | | | | Feedback: | Wants will always exceed resources. | | | | |

Question 4 | 2 out of 2 points | | In economics, scarcity means that: | | | | | | Feedback: | We cannot produce everything with fixed resources. | | | | |

Question 5 | 1 out of 1 points | | The basic factors of production include: | | | | | | Feedback: | The basic four factors are required for the production of goods and services. | | | | |

Question 6 | 1 out of 1 points | | Which of the following is not a factor of production? | | | | | | Feedback: | Land, labor, capital, and entrepreneurship are the factors of production. Money does not fall under any category of the factors of production. | | | | |

Question 7 | 2 out of 2 points | | With respect to factors of production, which of the following statements is not true? | | | | | |