Chapter 1 TEST LISTS

Question 1

Name the to parts that economics is divided into

Answer 1

1) macroeconomics

2) microeconomics

Question 2

Scarcity leads to what 3 choices

Answer 2

1) What to produce
2) How to produce
3) For whom to produce

Question 3

Name the two types of economic products

Answer 3

1) Goods

2) Services

Question 4

Name the 4 types of Goods

Answer 4

1) Durable good
2) Non-Durable good
3) Consumer good
4) Capital good

Question 5

What three economic basic choices are faced by all societies

Answer 5

1) what to produce- Decision is made either by the gov(like North Korea) or by the consumer (like USA)
2) How to produce- More automated machines, robots or more workers?
3) For whom to produce- Should housing be made for the low or high income

Question 6

What 2 broad groups is our economy made up of?

Answer 6

1) Producers

2) Consumers

Question 7

Producers need what 4 factors of production.

Everything that is made requires these 4 factors of production

Answer 7

1) Land
2) Capital
3) Labor
4) Entrepreneurs

Question 8

Name 5 consumer rights that protect them against producers

Answer 8

Right to…

1) safety
2) be informed
3) choose
4) Be heard
5) redress

Question 9

1960’s social movement that was an attempt to educate buyers about purchases they make and demand better and safer products

Answer 9

Consumerism