Multiple Choice - Benchmark A: Productive Resources

Name:__________________________ Class:__________ Date:__________

Each sentence has one word missing. Circle the missing word.

1. The sacrifice of one option for another when a decision is made is called a
__________ .
A. trade-off
B. goods
C. opportunity cost
D. entrepreneurship

2. The decisions made about what resources will be used to produce goods
and services is called __________ .
A. resource allocation
B. productive resources
C. production
D. goods

3. The lack of sufficient resources to produce all the goods and services that
people desire is called __________ .
A. services
B. scarcity
C. opportunity cost
D. resource allocation

4. The activities of a business owner about economic decisions of what to

produce and how best to produce goods and services is called
__________ .
A. goods
B. scarcity
C. entrepreneurship
D. trade-off

5. Objects that people want to buy are called __________ .

A. opportunity cost
B. goods
C. resource allocation
D. trade-off
6. The term, __________ , refers to the process of using natural resources,
labor, capital goods, and entrepreneurship to make goods and services.
A. trade-off
B. resource allocation
C. opportunity cost
D. production

7. An __________ is the value of the next best alternative given up when a

choice is made.
A. opportunity cost
B. resource allocation
C. entrepreneurship
D. scarcity

8. Land (i.e., water, soil, trees, minerals) and capital (i.e. buildings, machinery,
vehicles, tools) required to produce goods and services are known as
__________ .
A. productive resources
B. goods
C. services
D. scarcity

9. The term, __________ , are actions and work that people are willing to
purchase.
A. productive resources
B. resource allocation
C. production
D. services
 Answers - Benchmark A: Productive Resources

1. A. trade-off

2. A. resource allocation

3. B. scarcity

4. C. entrepreneurship

5. B. goods

6. D. production

7. A. opportunity cost

8. A. productive resources

9. D. services