1.4 Concept of Allocation of Resources

Front

What are the three questions faced by all economies?

Back

What to produce, how to produce it and who receives it

Front

What encourages firms to produce what consumers demand?

Back

The chance to earn a high profit

Front

How are resources allocated in a market economy?

Back

By the price mechanism

Front

An economic system answers three questions about goods and services. Which of the following option is NOT one of these questions? What to produce? Who receives the products? How to produce? Where to produce?

Back

Where to produce?

Front

In what type of economy allocation do individuals and firms determine what will be produced?

Back

Market

Front

In economics there are 4 types of resources. Which of the following is NOT a type of resource? Land, Money, Labor, Entrepreneurship

Back

Money

Front

What makes a resource or good scarce? Must be limited in quantity, Must be desirable, Must have more than one use, All of these answers.

Back

All of these answers.

Front

What is the function of the price mechanism in a market economy?

Back

allocating resources and guiding choices

Front

Resource allocation deals with the ______________ of _____________ and the methods by which this is done.

Back

distribution, resources

Front

The factor of production that oversees resource allocation is _______________

Back

Enterprise