Economic Resources and Systems - I2BUS Chapter 2

Entrepreneurial resources are different from labor resources.

• True

• False

Two basic types of economic systems are a market economy and a demand economy.

• True

• False

Resources are the things necessary for making only what people need.

• True

• False

Every type of business needs labor resources to produce goods and provide services.

• True

• False

Every society has enough productive resources to produce everything people want and need.

• True

• False

In a market economy, producers set a price that:

• consumers can afford

• the government will allow

• will cover their costs, and result in a profit

• consumers are willing to pay

All of the following are factors of production except

• educational resources

• natural resources

• labor resources

• capital resources

Most nations have a:

• moderate command economy

• pure command economy

• pure market economy

• mixed economy

In a command economy:

• highly skilled workers earn the same as low-skilled workers.

• highly skilled workers earn less than low-skilled workers.

• highly skilled workers earn more than low-skilled workers.

• highly skilled workers are not needed.

A(n) _________________________ is an economic system in which economic decisions are made in the

marketplace.

• mixed economy

• command economy

• market economy

• none of the above