1. The main idea of this chapter is that (a) only poor people and gov-
ernments must make economic choices (b) all people, businesses,
and governments must make choices (c) it is easy to make economic
choices (d) it does not cost anything to make a choice.
2. Which one of the following is an example of an economic good?
(a) visit to a dentist (b) pair of sneakers (c) lesson taught by your
teacher (d) ride on a bus.
3.
Which one of the following is an example of an economic service?
(a) haircut (b) camcorder (c) DVD (d) pair of scissors.
4.
Which one of the following is an example of a consumer? (a) doctor
treating a patient (b) recording artist (c) person buying a pair of
jeans (d) worker in an auto plant.
6.
5. Which one of the following groups of names contains only capital
resources? (a) trees, water, iron ore (b) workers, business owners,
managers (c) machines, tools, factories (d) nature, people, services.
A good or service has value because it (a) costs money (b) satisfies a
human want or need (c) is sold in stores (d) is abundant in nature.
The reason scarcity exists is that (a) people want more goods and
services than can be produced (b) some people are wealthy while
others are poor (c) there is plenty of everything for everyone
(d) individuals and governments do not make the right choices.