Economic Basics

Factors of production include which of the following? (8)

• land, labor, capital and entrepreneurship
• technology, taxes and subsidies, expectations, number of producers
• goods and services
• all of the products produced in an economy

The value of the next best alternative that has to be given up for the action that is chosen is the (3)

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

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.

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

Which of the following countries has a command economy? (4)

• France
• Taiwan
• North Korea
• South Korea

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

Which of the following is NOT a factor of production? (7, 8)

• Land
• Money
• Labor 
• Capital

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

• Oil
• Money
• Workers
• Investors

Using the Factors of Production which of the following is an example of CAPITAL? (7, 8)

• Machinery
• Diamonds
• Water
• Investors