Intro to Econ

What is economics?

• The study of money
• The study of how people choose to use limited resources
• The study of governments and citizens
• The study of the past

Which of the following is NOT one of the three questions of economics?

• What to produce?
• How to produce?
• For whom to produce?
• When to produce?

"Gold" is an example of which factor of production?

• Land
• Labor
• Capital
• Entrepreneurship

A pickaxe is an example of which factor of production?

• Land
• Labor
• Capital
• Entrepreneurship

A mine worker is an example of which factor of production?

• Land
• Labor
• Capital
• Entrepreneurship

What is the value of the next-best alternative when you make a trade-off?

• Fruit snacks
• Opportunity Cost
• Scarcity
• Second-Best

In which economic system to businesses alone answer the three economic questions?

• Market economy
• Command economy
• Traditional economy
• Mixed economy

In which economic system does the government alone answer the three economic questions?

• Market Economy
• Mixed Economy
• Command Economy
• Traditional Economy

In which economic system do both businesses and the government answer the three economic questions?

• Command Economy
• Market Economy
• Mixed Economy
• Traditional Economy

In the circular flow model, the product market describes _____.

• stores that sell goods and services to households
• the government paying for public goods
• households selling their labor to businesses
• households receive income from businesses