Scarcity and Factors of Production Branscomb Fall 2020

The basic economic conditions that exist when unlimited wants exceed limited productive resources is called

• capital

• scarcity

• economics

• factors of production

The BEST explanation of why there will always be scarcity is because

• people and their tools are inefficient.

• natural disasters created by frequent shortages.

• governments create scarcity to keep people wanting more.

• while peoples' wants are unlimited, resources are limited.

The study of how individuals, institutions, and scarcity make choices under the conditions of scarcity is

• allocation

• scarcity

• economics

• specialization

Katherine is facing a difficult decision between how much time she spends as a cheerleader and how much time she spends studying her economics. Which economic concept BEST describes the problem she is facing?

• scarcity

• economics

• supply and demand

• competition for her money

Which of these terms is the BEST synonym for the word "entrepreneur"?

• business owner

• homeowner

• employee

• student

Land, labor, capital and entrepreneurship are the

• basis of employment

• results of production

• factors of production

• results of supply and demand

As one of the factors of production/productive resources, capital can be defined as

• the goods and services a business produces

• the supply of labor needed to produce goods

• the people that purchase goods and services

• the equipment and factories needed to produce goods

Ditch digger, computer programmer, international financier are all considered what?

• land

• labor

• captial

• entrepreneur

Mr. Simpson has decided to start a new company to produce bobble-head dolls. He has hired a contractor to build his factory and a manager to run the company for himm. Mr. Simpson primarily represents which factor of production?

• land

• labor

• capital

• entrepreneur

The BEST explanation of why there will always be scarcity is because

• people and their tools are inefficient

• natural disasters create frequent shortages

• governments create scarcity to keep people wanting more

• while peoples' wants are unlimited, resources are limited