Economics: Unit 1 Review

Factors of production include which of the following?

• Land, labor, capital, entrepreneurship
• technology products
• goods and services
• all of the products produced in an economy

The fundamental problem of economics is ... 

• equitable system of taxation
• Establish a framework for provision of goods and services
• the scarcity of the factors of production relative to the unlimited human wants
• Equitable distribution of income equality 

The value of the next best alternative that has to be given up for the action that is chosen is the ...

• factors of production
• trade off
• opportunity cost
• productivity

Which of the following is an example of investment in human captial?

• a company builds a new factory
• a state puts in a new highway
• a business trains a new employee
• a country builds new bridges

In a capitalist system, most property is ...

• private property
• owned by the government
• regulated by the government
• owned by banks

What to produce, how to produce, and for whom to produce are three economic questions associated with ... 

• Market
• Command
• Mixed
• All economies

Almost all economic systems today are 

• traditional economies
• command economies
• pure free market economies
• mixed economies

Who owns the factors of production and makes all the economic decisions in a market economy?

• individuals
• governments
• economists
• communities

What motivates people to establish new businesses or expand existing ones ... 

• private property
• government regulations
• freedom of choice
• profit motive

Competition forces businesses to do what

• keep prices low
• raise prices
• lower the quality of their product
• raise the costs of production