1.

(01.01 LC) Why must individuals make choices? (3 points)

	Resources are scarce.
	Production of consumer goods is unlimited.
	The options in any situation have equal value.
	They live in a market-based society.
	Change is necessary for economic growth.

2.

(01.01 LC) Which of the following is an example of a factor of production being used as a capital good? (3 points)

	Ice cream being consumed by a child on a hot day
	Toilet paper in a suburban household
	Lettuce for salads in a restaurant
	A poster on a teenager's bedroom wall
	A stuffed toy used by a parent to calm a toddler

3.

50- 45- - - -. B Corn A C 25 40 WheatDominican Republic Cuba 50 Consumer Goods Consumer Goods 20 25 50 Capital Goods Capital GoodsPrice/Unit ($) S A B C D 25 35 45 60 70 Quantity