Allocation of Resources

What is the function of the price mechanism in a market economy?

• allocating resources and guiding choices

• allowing governments to provide price stability

• enabling markets to operate fairly

• preventing competitors from entering a market

What drives businesses towards action that increases wealth?

• profit

• shareholder satisfaction

• satisfies employees

• market share

Love is an example of what type of incentive?

• Monetary

• Personal

• Tangible

• Non-monetary

Which group do incentives influence to change their behavior?

• Buyers

• Sellers

• Both buyers and sellers

• None of these answers.

In what type of economy allocation do government officials determine how to produce goods/services?

• Government

• Command

• Market

• Traditional

An economic system answers three questions about goods and services. Which of the following option is NOT one of these questions?

• What to produce?

• Who receives the products?

• How to produce?

• Where to produce?

In what type of economy allocation do individuals and firms determine what will be produced?

• Government

• Command

• Market

• Traditional

In economics there are 4 types of resources. Which of the following is NOT a type of resource?

• Land

• Money

• Labor

• Entrepreneurship

Mental talents of workers is an example of what productive resources?

• Land

• Labor

• Capital

• Entrepreneurship

What makes a resource or good scarce?

• Must be limited in quanity

• Must be desirable

• Must have more than one use

• All of these answers.