Econ Test #1

Which of the following questions below is NOT a question that economists, businesses, and people must answer?

• What goods and services will be produced?

• How will the goods and services be produced?

• Who are the goods and services for?

• How much will be produced now and how much will be produced later?

• When will the goods and services be made?

What are the factors of production?

• risk and opportunity

• land, labor, capital, and enterpreneurship

• wages, salaries, and profit

• goods and services

What is the basic problem of economics?

• Scarcity

• Overproduction

• Too many resources such as goods and services

• Underconsumption of resources

What does opportunity cost mean?

• The next best alternative foregone (lost)

• The cost of exploring business opportunities

• The cost of the item selected

• The labour used in producing the product

In what economic systems do private citizens determine what to produce, how to produce it, and how to market it?

• Traditional Economy

• Market Economy

• Command Economy

• Mixed Economy

In what economic system does the government determine what to produce, how to produce it, and how to market it?

• Traditional Economy

• Market Economy

• Command Economy

• Mixed Economy

What do you call the tools and equipment needed to create a good or service?

• Human Ability

• Capital Resources

• Human Resources

• Land Resources

Scarcity is defined when a product is HARD to get. What happens to the price of the product when the item is scarce?

• Price Increases
• Price Decreases

A(n) ______  is someone who takes a risk to start a business (usually small business).
Ex. Bill Gates who started Microsoft.

• Loan Officer
• Investor
• Entrepreneur
• Laborer

Resources found in nature like air, soil, sunshine, water, coal, plants, and animals.

• Human Resources
• Natural Resources
• Nonrenewable Resources
• Capital Resources