1)The income earned by the people who sell the services of the factor of production _______ is called _______.

Question content area bottom

A.

labour; interest

B.

land; wages

C.

capital; interest

D. entrepreneurship; rent

2) Complete the following sentence.

_______ is an example of _______.

Question content area bottom

A.

Themayorofyourcity; entrepreneurship

B.

JosephBombardier,inventorofthesnowmobile; land

C.

Auniversitylibrary; capital

D.

NiagaraFalls; labour

3)

Consider the earnings of economics majors in comparison to the earnings of other majors.

The earnings of economics majors are _______.

Question content area bottom

A.

less than business majors but greater than finance majors

B.

greater than finance, engineering, math, and business majors

C.

less than business and math majors but greater than engineering majors

D.

less than political science, computer science and math majors

4)

Every day we make many choices. Why is making choices inevitable?

Question content area bottom

We can't avoid having to make choices because _______.

A.our wants exceed the resources available to satisfy them

B.we keep changing our minds

C.there is too much variety

D.there is too much available

E.we have too much time on our hands

5)

Complete the following sentence.

Human capital _______.

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A.remains constant over time

B.is the human resource that organizes labour and land

C.includes the machines and buildings that businesses use to produce goods and services

D.grows as people gain work experience

6) Choose the statement about incentives that is

incorrect.

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Part 1

A.Incentives create scarcity.

Incentivescreatescarcity.

B.

Withlowcomputerprices,schoolboardshaveanincentivetoconnectmoreclassroomstotheInternet.

C.

Anincentivecanbearewardthatencouragesanaction.

D.

RogerFedererhasanincentivetotraindiligentlybecausetheprizemoneyislarge

7)

What does it mean do say that you make a choice in your self-interest?

Question content area bottom

Part 1

When you make a choice in your self-interest, _______.

A.

that choice is theoneyouthinkisbest foreveryone includingyourself

B.

that choice is theoneyouthinkisbest forothersbutnotforyou

C.that choice may also be the best choice for society

D.

that choice is a selfishchoiceifit requiresproduction bysomeoneelse