Economics Quiz 1

Resources (a.k.a. the factors of production are)

• Land and Labor
• Land and Capital 
• Entrepreneurship
• Land, Labor, Capital and Entrepreneurship

What is the fundamental problem of every society?

• labor costs
• scarcity
• economic interdependence
• market fluctuation

The definition of Scarcity is...

• An unlimited amount of resources to meet limited wants and needs
• A limited amount of resources to meet unlimited wants and needs.
• When people use time and energy to create events
• a city where individuals commit themselves to unlimited wants and needs

What is the fundamental problem of economics? 

• How to keep consumers out of debt?
• How to fulfill our unlimited wants and needs with limited resources?
• How to figure out the way to make the most money?
• How do we ensure all people get a college education?

When resources are limited, it is referred to as

• Economics
• Scarcity
• Surplus
• Demand

Which characteristic of the United States Economy should result in better quality of goods and services at lower prices?

• Competition
• Profit
• Limited government
• Private property

The United States is a __________ economy.

• free market
• mixed
• traditional
• command

Name the characteristic. Individuals and businesses have the right to own land, a business, and other resources without the government taking it arbitrarily.

• free markets
• private property
• profit
• competition

There are 4 _______________. They are land, labor, capital and entrepreneurship.

• Factors of Production

• Market Economy

• Profit

• Economics

Opportunity Cost is...

• What you gave up by making the choice you did.

• The price you pay to purchase a good at the store

• The average price of goods