Economics & Entrepreneurship

Trade off is...

• Trading one thing for another

• All alternatives given up when choosing one option

• Giving up one thing for all options

• the same as an opportunity cost

Factors of production are...

• Land, Capital, Labour, Entrepreneurship

• Land, Capital, Labour

• Labour + Entrepreneurship

• None of the above

Entrepreneurs...

• Are not part of the factors of production

• Take resources & create something new

• Harm the economy

• All of the above

Which of the following is the correct circular flow of money?

• Goods & services markets --> Households --> Factor markets --> Firms

• Goods & services markets --> Households --> Factor markets --> Firms

• Factor markets --> Households --> Goods & services markets --> Firms

• Firms --> Goods & services markets --> Factor markets --> Households

Law of Supply:

• As price decreases, quantity supplied increases

• As price increases, quantity supplied increases

• As price increases, quantity supplied decreases

• None of the above

Shifters of Demand include:

• Tastes & preferences

• Number of buyers

• Number of producers

• A & B

• All of the Above

Which of the following are characteristics of the perfect competition market structures?

• Homogenous products

• Barriers to entry

• No firm has control over the price

• There is no non-price competition

What are the characteristics of a monopoly?

• Unique product, no close substitutes

• No barriers to entry

• Lots of control over price

• Multiple firms