Scarcity

What are the Four factors of production?

• Needs, wants, choices

• Workers, management, entrepreneurs

• Land, labor, capital, Entrepreneur

• Human capital, physical capital, intellectual capital

Which of the following is a benefit that a business is likely to attain from purchasing new equipment?

• Increased productivity

• Better entrepreneurial knowledge

• Fewer natural resources required

• Lower costs

Why are entrepreneurs important to the economy?

• They desire profits.

• They promote economic growth.

• They have talent and imagination.

• They are willing to take risks.

A sales clerk represents which factor of production?

• Entrepreneur

• Capital

• Labor

• Land

Why is there scarcity even in an affluent country like the United States?

• Entrepreneurs are scarce and companies need leaders.

• Resources are limited but wants are unlimited.

• Some people are poor while others are wealthy.

• Wants are limited but needs are unlimited.