The American Economy Quiz

Machines, buildings, and tools used to make other goods and services are ____________ goods.

• consumer

• capital

• factor

• manufactured

The total value of all the final goods and services produced in a country in one year is its ________

• income

• VAT

• GDP

• resources

Consumers earn their income in ____________ markets where productive resources are bought and sold.

• factor

• product

• resource

• consumer

The _____________ between sellers keeps the cost of production low and quality of goods high.

• profit motive

• interdependence

• exchange

• competition

The four factors of production are natural resources, labor, capital and

• entrepreneurs

• services

• goods

• specialization

A nation's standard of living is a measure of not only the quantity of its products, but also

• the value of its resources

• of its people

• the quality of its goods and services

• of how the products are produced

The four sectors, business, consumer, government, and foreign are all part of

• the GDP

• the factors of production

• the circular flow of economic activity

• a nation's standard of living

When workers receive additional training for their jobs, this increases

• the cost of production

• human capital

• economic interdependence

• the division of labor

In a free enterprise economy, competition is allowed to flourish with a minimum of

• government interference

• voluntary exchange

• specialization

• division of labor

In our economy businesses try to produce goods and services that people want most; this is an example of

• private property rights

• specialization

• the factors of production

• consumer sovereignty