Unit 1 Review

The 3 types of resources are

• land, capital, human

• human, natural, capital

• entrepreneurship, labor, capital

• labor, natural,human

The factors of production are used to

• create social change

• encourage efficient use of resources

• make all goods and services

• none of the above

Peoples wants are greater than their resources can be described as

• human capital

• scarcity

• supply and demand

• the circular flow model

Education, training, and skills are examples of

• labor

• land

• human capital

• physical capital

The study of economics is correctly defined as

• how best to supply unlimited wants with scarce resources

• how to predict when a recession will occur

• how to manage the stock market

• how to produce and distribute money

All of the following can lead to a shift of the PPC besides

• change in technology

• change in currency

• change in resources

• change in trade

Entrepreneurs play what role in the production of goods and services?

• act as primary laborer

• purchase land and sell it for profit

• put the other factors of production together to produce

• none of the above

Which of the following is not one of the basic economic questions?

• Who to produce for?

• What to produce?

• How much to produce?

• Where to produce?

The land factor of production can best be described as

• wide expanses of open land used to put businesses on

• any natural resource being used to make goods or services

• the skills and knowledge acquired by a person

• the use of human made materials to produce goods

A country is inefficient when

• it is producing at a point along the PPC

• it is producing less than it could be

• it has reached a point previously unattainable

• it is paying its employees less than it should be