Chapter1 Economics Practice Test? Quiz!
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You might have absolutely no idea what the social science of economics even covers, never mind how it is studied, analyzed and put into practice. That’s completely fine, however, as your presence here shows us that you have a desire to learn a little about the subject! Let’s start from the beginning, shall we? Take the following quiz on the first chapter of economic study to see if you know anything right off the bat.
- 1.
What does TINSTAAFL stand for?
- A.
There Is No Such Thing As A Free Lunch
- B.
That Is Not So True All Allies Fall Long
- C.
This Is Not So Tall All Aliens Freely Launch
- D.
There Is No Such Thing As A Free Lobster
Correct Answer
A. There Is No Such Thing As A Free LunchExplanation
TINSTAAFL stands for "There Is No Such Thing As A Free Lunch." This phrase is often used to convey the idea that everything has a cost or consequence, even if it may not be immediately apparent. It suggests that even if something appears to be free, there is always some form of payment or trade-off involved.Rate this question:
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- 2.
What is the economic problem
- A.
Wants
- B.
Goods
- C.
Scarcity
- D.
Labor
Correct Answer
C. ScarcityExplanation
Scarcity refers to the fundamental economic problem of limited resources in relation to unlimited wants. It means that there are not enough resources available to satisfy all the wants and needs of individuals and society as a whole. This scarcity forces individuals and societies to make choices about how to allocate resources efficiently and effectively.Rate this question:
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- 3.
What are the four factors of production?
- A.
Wants,needs,value and utility
- B.
Land,capital,labor and entrepreneurs
- C.
Consumers,goods,sevices and market
- D.
Land,seller,buyers and enterprise
Correct Answer
B. Land,capital,labor and entrepreneursExplanation
The four factors of production are land, capital, labor, and entrepreneurs. Land refers to all natural resources used in the production process. Capital includes all man-made resources such as machinery, equipment, and buildings. Labor refers to the physical and mental effort put into production by workers. Entrepreneurs are individuals who take risks and combine the other factors of production to create goods and services. These factors are essential in the production of goods and services in an economy.Rate this question:
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- 4.
Consumers use goods and servicesto satisfy their
- A.
Wants and needs
- B.
Opportunity cost
- C.
Hunger and thurst
- D.
None of the above
Correct Answer
A. Wants and needsExplanation
Consumers use goods and services to satisfy their wants and needs. Wants are the desires and preferences of individuals for specific goods or services, while needs are the essential requirements for survival and well-being. Consumers make choices based on their wants and needs, considering factors such as price, quality, and availability. By satisfying their wants and needs through the consumption of goods and services, consumers aim to improve their overall satisfaction and well-being.Rate this question:
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- 5.
A tree for a hard-wood floor company would be
- A.
Labor
- B.
Land
- C.
Capital
- D.
Productivity
Correct Answer
B. LandExplanation
In the context of a hard-wood floor company, the term "land" refers to the natural resources required for the production of hardwood floors, such as forests or woodlands. These resources are essential for obtaining the raw materials needed to manufacture the flooring products. Labor, capital, and productivity are also important factors in the company's operations, but land specifically relates to the availability and utilization of natural resources.Rate this question:
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- 6.
An irrigational system would be what for a frozen food company
- A.
Land
- B.
Labor
- C.
Capital
- D.
Value
Correct Answer
C. CapitalExplanation
An irrigational system would be considered as capital for a frozen food company because it is a long-term investment that helps in the production and preservation of crops. It is a physical asset that enables the company to efficiently water and maintain their agricultural land, ensuring a consistent and high-quality supply of raw materials for their frozen food products.Rate this question:
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- 7.
A chainsaw for a lumber company would be what
- A.
Capital
- B.
Goods
- C.
Utility
- D.
Wants
Correct Answer
A. CapitalExplanation
A chainsaw for a lumber company would be considered a capital good. Capital goods are physical assets that are used to produce goods or services. In this case, the chainsaw is a tool that the lumber company would use in their production process to cut down trees and prepare them for further processing. It is not a utility, which refers to the satisfaction or usefulness derived from consuming goods or services. It is also not a want, which is a desire or preference for something.Rate this question:
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- 8.
The scope of economics deals with every thing except
- A.
Description
- B.
Analysis
- C.
Entrepreneur
- D.
Prediction
Correct Answer
C. EntrepreneurExplanation
The scope of economics deals with various aspects such as description, analysis, and prediction. However, it does not directly focus on the role of entrepreneurs. While entrepreneurs play a vital role in the economy by creating and managing businesses, economics primarily examines the larger economic systems, markets, and behaviors of individuals, firms, and governments. Therefore, the correct answer is "entrepreneur."Rate this question:
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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Mar 22, 2023Quiz Edited by
ProProfs Editorial Team -
Feb 14, 2012Quiz Created by
Malik_J
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