EPF U1 Basics of Economics

What are the resources called that are needed to produce a good or service?

• Goods and services.

• Needs and wants.

• Factors of production.

• All of the above.

What could be an example of capital?

• Buildings

• Machines

• Money

• All of the above

Which one of the four factors of production does the picture show?

• Land

• Labor

• Capital

• Entrepreneur

A herd of cattle is an example of ...

• Land
• Labor
• Entrepreneur
• Capital

A product or service is scarce when

• The amount available is not enough to meet the demands of society

• The amount available can satisfy the demands of society

• Its price far exceeds the value of the item.

• One company is responsible for producing the product.

Economics can be described as the study of

• Money

• Choices

• graphing

• price ceilings and price floors

Why do entrepreneurs take risks?

• to set their own work hours

• to earn a profit for themselves

• to provide Goods & Services to their customers

• to provide salaries and benefits to their employees

What does it mean to say that a resource is scarce?

• A society does not have enough money to purchase this resource.

• Nobody wants to buy this resource.

• The resource is no longer available

• There is not enough of this resource to satisfy all wants and needs of a society.

• There is an unlimited amount of the resource available

How are resources more likely to be allocated in a command economy?

• Based on traditions

• Government planning

• Markets

Which of the following best captures the three economic questions every economic systems must answer?

• What is produced, when, and why?

• What is produced, how, and when?

• What is produced, how, and for whom?

• How much is produced, how often, and for whom?