What is scarcity?

• unlimited wants and needs

• a shortage of resources

• a lack of goods and services

• limited expenses

Which is NOT a factor of production?

• natural resources

• labor

• capital

• the marketplace

Which statement about natural resources is true?

• Water is renewable because it can be reproduced

• Lumber is not renewable because it takes a long time to grow new trees

• Coal is renewable because there is so much of it still in the ground

• Agricultural products are renewable because new crops can be grown each season

Which statement about natural resources is NOT true?

• Natural resources can be processed to make goods

• The amount of natural resources available to a society has little effect on its economy

• Synthetic materials such as nylon can be made from natural resources

• Countries that have scarce natural resources must get them from somewhere else

Which means the same as human resources?

• capital resources

• service providers

• labor resources

• unskilled workers

Which is an example of a capital resource?

• a machine used to make molded plastic toys

• a customer service representative

• money borrowed from a bank

• the president of a company

Which is most likely to profit from society's changing wants and needs?

• a business with existing capital resources

• a producer of goods

• an entrepreneur

• a business with substantial labor resources

Which refers to the study of how people satisfy their needs and wants by making choices?

• entrepreneurship

• economics

• equilibrium

• opportunity

What is opportunity cost?

• the income people receive by taking risks

• giving up the chance to use a resource for one thing instead of another

• the methods and labor used to produce a good

• the income people have to purchase goods and services

What are two basic types of economic systems?

• supply and demand

• competition and profit

• private enterprise and free enterprise

• market economy and command economy