Scarcity & Economic Systems Review

What term refers to the principle that society has limited resources and therefore cannot produce all the goods & services people wish to have?

• inefficiency

• inequality

• scarcity

• market failure

Which of the following is NOT an example of scarcity?

• Only some people can afford to buy a BMW automobile

• Not everyone in society can achieve the highest possible living standard to which they might aspire

• Miranda has an unlimited supply of Oranges in her magical orchard.

Economics is the study of how society manages its

• limited wants and unlimited resources

• unlimited wants and unlimited resources

• limited wants and limited resources

• unlimited wants and limited resources

Approximately what percentage of the world's economies experience scarcity?

• 19%

• 40%

• 85%

• 100%

Factors of production are...

• Used to produce goods and services

• also called output

• abundant in most economies

In economics, the term "physical capital" refers to...

• the finances necessary for firms to produce their products

• buildings and machines used in the production process

• the money households use to purchase firms' output

• stocks and bonds

Which of the following is NOT a factor of production?

• Land

• Labor

• Human Capital

• Money

Which of the following is "human capital" necessary for producing a new video game?

• Slaves

• Knowledge regarding programming languages

• Hammers & Screw Drivers

• Carrots

Which of the following is an example of "land" necessary to produce "steel."

• Iron Ore

• How should I know where they produce steel?

• The Pittsburgh Steelers

• Factories

A Hunter-Gatherer tribe's efforts to collect enough food in order to survive would be an example of a...

• Traditional Economy

• Market Economy

• Command Economy