Economics Unit 1

The United States has a market economy. (4)

• True
• False

Businesses can make decisions about the best use of their resources by analyzing (9)

• economic pricing models.
• production possibilities.
• government policies.
• generalizations about consumer behavior.

All the combinations of goods and services that can be produced in a given time with a fixed amount of resources are called (8)

• factors of production.
• costs of production.
• opportunity costs.
• production possibilities.

Entrepreneurship refers to the ability to (8)

• manage other people.
• adapt technology efficiently.
• start new businesses, introduce new products and processes, and improve management techniques.
• borrow capital successfully and expand an existing business to meet customer demand.

In the time period covered by the production possibilities curve, the company decides to make 4 gallons of red paint. How many gallons of blue paint can the company make with the available time and resources? (6)

• 2
• 3
• 6
• 8

In a market economy, decisions about what and how much will be produced are made by (4)

• the operation of the labor, capital, and consumer goods and services market
•  the government.
• consumers, when they cast a vote
• none of the above

What goods and services should be produced, how they should be produced, and who should share in what is produced are three basic questions addressed by (6)

• market economies.
• command economies.
• mixed economies.
• all economies.

In which economy does customs, traditions and beliefs answer 3 basic questions? (4)

• Tradition
• Command
• Market
• Mixed

Using the Factors of Production which is an example of LAND (7, 8)

• Oil
• Money
• Workers
• Investors

Scarcity exists when wants are always greater than the resources available to satisfy those wants. (7)

• True
• False