Economics - Chapter 1

Our inability to satisfy all our wants is called ___________.

• profit

• scarcity

• surplus

• wages

Because we face scarcity, we must make _____________.

• studies

• money

• profit

• choices

A(n) __________________ is a reward that encourages an action or a penalty that discourages an action.

• fine

• FOPs

• incentive

• human capital

The work time and work effort that people devote to producing goods and services is __________.

• labor

• land

• capital

• rent

The tools, instruments, machines, buildings, and other constructions that businesses use to produce goods and services are _____________.

• land

• capital

• entrepreneurship

• labor

The human resource that organizes land, labor, and capital is _________________.

• land

• labor

• capital

• entrepreneurship

Land earns ___________.

• interest

• rent

• wages

• profit

Labor earns ___________.

• wages

• profit

• interest

• capital

Capital earns _____________.

• interest

• wages

• rent

• salaries

Entrepreneurship earns ___________.

• interest

• profit

• wages

• rent