Unit 1 Test (ECON)

Trade Off

• A tangible item that is desired.

• Another word/phrase for opportunity cost.

• A luxury.

• The ability to acquire wealth.

If individuals in an economic system do what their parents did for a living, the economic system is

classified as _____

• Private

• Traditional

• Command

• Market

Economic services are not tangible.

• True

• False

Economic Opportunity

• Everyone’s needs are being met.

• You can make many different choices.

• Fairness.

• The ability to acquire wealth.

The minimum wage is an example of a federal law that promotes ____

• economic growth

• economic equity

• full employment

• economic efficiency

The former Soviet Union and North Korea have command economies.

• True

• False

Economic Equity

• You can make many different choices.

• Everyone’s needs are being met.

• Fairness.

• . The ability to acquire wealth

Which group of people ultimately determine what is produced in a free enterprise economy?

• Congress

• consumers

• the president

• consumers/business

The factors of production are land, labor, capital, entrepreneurship, and technology

• True

• False

Economic Freedom

• The ability to acquire wealth.

• Fairness.

• You can make many different choices.

• Everyone’s needs are being met.