Econ: Unit 1 Review

Which of the following economic systems is characterized by a lack of competition?

• Command

• Capitalist

• Free Enterprise

• Mixed

. Control of personal belongings

. Privilege of owning personal possessions

. Ability to restrict others from invading personal possessions

Which of the following is the best title for the points above?

• Competition

• Property rights

• Role of government

• Economic incentives

The image displays an example of which recent characteristic of the US economy?

• Healthcare Reform

• Elasticity

• Outsourcing

• Pure Competition

The basic idea of choice presents which of the following problems in economics?

• Decisions produce costs

• Businesses can produce what they want

• People get to decide what they want

• Choice is a way of life

Scarcity is a basic economic problem because...

• Governments limit production

• Opportunity Costs limit demand

• People have trouble making choices

• Resources are limited

Anibal is planning to open a small barber shop. Which of the following represents the physical capital needed to start a barber shop?

• Barbers

• Money

• Marketing Team

• Hair Clippers

Which resource would be BEST considered the factor of production called land?

• Oil

• Factory

• Money

• Tractor

Jordan wants to buy a pair of Air Jordan 1's and the new iphone before she leaves for college. She only has enough money to purchase the Jordan's. Which of the following is the opportunity cost of purchasing the sneakers (shoes)?

• College tuition money

• Moving expenses

• A new computer

• A new iphone

The human effort involved in the production of goods and services is known as:

• Capital
• Entrepreneurship
• Labor
• Land

The enterprising spirit that allows an individual to spot gaps in the market and take risks (including starting a business):

• Entrepreneurship
• Capital
• Land
• Labor