Econ

What is the result of having limited resources in an economy?

• The government divides up resources to ensure economic equality.

• People make economic choices about what to do with their resources.

• Human capital becomes more important to the economy than physical capital.

• The factors of production become controlled by entrepreneurs.

The economic problem created by people having unlimited wants and limited resources to fulfill those wants is called _____.

Natural resources including trees and oil are part of which factor of production?

• Labor

• Land

• Capital

• Scarcity

Which option is an example of land as a factor of production?

• An artist painting a picture

• An industrial assembly line

• A tree used to make paper

• A government increasing taxes

Which statement best describes the economic relationship between households and product markets?

• Households buy goods from product markets.

• Households provide goods to product markets.

• Product markets supply households with natural resources.

• Product markets purchase resources from households.

Which statement best summarizes the role of households in the flow of goods?

• Households consume products made by businesses.

• Households manufacture goods for product markets.

• Households transport products created in resource markets.

• Households establish rules and regulations for businesses.

Which statement best summarizes the role of businesses in the flow of goods?

• Businesses offer goods and services to consumers.

• Businesses provide natural resources to product markets.

• Businesses consume goods produced by households.

• Businesses sell goods that are created in product markets.

__________ is a person or group of people living in one residence

An organization engaged in economic activity to produce and sell goods or services

• Business

• Household

• Product market

• Resource market

The portion of the economy where goods and services are sold to consumers

• Product market

• Resource market

• Household

• Business