Economics Review

Which is NOT a factor or production?

• Land

• Oil

• Capital

• Entrepreneurship

• Labor

An example of the factor of production "labor" is

• tools

• water

• Bill Gates

• typing

The factor of production "Entrepreneurship" is necessary in order to

• move land

• organize the other three factors

• build capital

• motivate labor

The economic concept of unlimited wants and limited resources

• supply

• demand

• GDP

• scarcity

A characteristic of a market economy is

• no or very limited government control

• government controls everything

• government tells people what to do

• litte choice

A characteristic of a command economy is

• lots of products

• fierce competition

• individuals decide what is produced

• government decides what is produced

In theory, what is an advantage of a command economy compared to the US economic system?

• better quality

• new products

• low prices

• everyone gets what they need

Why is competition important for our economic system?

• It drives the price down and quality up

• It drives the price up and quality down

• It drives the price down and the quality down

• It drives the price up and quality up

When there is no other competition for a product, that company is said to be a

• Monopoly

• Oligopoly

• Free Market

• Open Market

Conservatives tend to want

• less government involvement

• more government involvement