Economics Unit 1 Test Review

Factors of production (land, labor, capital, entrepreneur) are examples of _________. 

• resources
• stocks
• opportunity cost
• income

What type of business organization has two or more owners who share risks and profits?

• proprietorship
• partnership
• corporation
• friendship

What type of business raises money by selling stock or shares of ownership?

• nonprofit organization
• partnership
• proprietorship
• corporation

What type of business organization has one owner who takes all the risks and all the profits?

• partnership
• corporation
• proprietorship
• dictatorship

What type of business organization is authorized by law to act as a legal person regardless of the number of owners?

• partnership
• corporation
• proprietorship
• government

What are individuals and groups that buy and use goods and services called?

• producers
• consumers
• entrepreneurs
• investors

What is the BEST definition of an entrepreneur?

• person who purchases raw materials from businesses and sells them to the government
• person who improves on an invention
• person who invents a brand new product
• person who takes a risk to produce and sell goods and services in search of profit

What is the opportunity cost of going to the movies?

• Value of the computer game.
• Price of the movie tickets.
• Time of buying the computer game.
• Enjoyment of seeing the movies.

The government of the Soviet Union provided food for its citizens.  However, the food was often in short supply, had little variety, and was of poor quality.  What type of economy was the Soviet Union?

• Mixed
• Market
• Command
• Traditional

Most countries today have which type of economic system?

• Mixed
• Market
• Traditional
• Command