Factors of Production/Economic Systems Test Review

Which of these is NOT one of the 4 factors of production?

• Labor

• Land

• Entrepreneurship

• Work Skills

A doctor attending a conference focused on new methods of treatment for heart disease would be an example of....

• an increase labor

• a market failure

• an increase in human capital

• a decrease in labor

Mr. C has $10 to spend on a movie ticket, fast food or new socks. If he chooses to buy socks which of the following is NOT part of his opportunity cost?

• The $10 dollars he spent to buy the socks

• The lost enjoyment of seeing a movie

• The cost of the shoes he will buy next week

• The hunger he feels from not eating

Which of the following is NOT a requirement of scarce resources?

• Limited

• Desired

• Valuable

• Tradeable

The factories pictured above would be categorized as which factor of production?

• Land Resources

• A Labor Resource

• A Capital Resource

• They are not factors of production

This image of an assembly line BEST represents the answer to which economic question?

• What to produce?

• How to produce?

• When to produce?

• For whom to produce?

Which of the following BEST explains why entrepreneurs take the risk of starting a business?

• to make profits homie

• to have the freedom to make their own choices

• to make their own hours

• because the government backs them financially

In which economic system is the protection of private property rights essential?

• Command

• Traditional

• Market

• Socialism

In which economic system does the government answer all three of the big economic questions? (What to produce? How to produce? For whom to produce?)

• Command

• Socialism

• Market

• Traditional

Based on the passage, East Germany's government planned to transform its economy from: Click the magnifying glass for a better view.

• Traditional to mixed

• Command to traditional

• Market to mixed

• Command to mixed