Economics Test Review

_______ are factors of production that are used in the production of goods and services.

• Resources

• Production

• Scarcity

• Consumption

Which of the following is not a type of resource?

• natural

• human

• capital

• Supply

Which of the following is a type of resource?

• Production

• Consumption

• Entrepreneurship

• Choice

The amount of money exchanged for a good or service is

• capital

• supply

• demand

• price

According to the law of demand, consumers are likely to buy more goods and service when prices are

• lower

• higher

• changing

• equal

The tools (machinery) needed to produce goods and services is called? (Examples include: oven and sewing machine)

• capital

• gross income

• profit

• tax revenue

The type of economy a country has is determined by the

• amount of government involvement in economic decisions

• number of consumers and producers

• amount of profit each business makes the previous year

• popular vote of the citizens

According to the law of supply, producers will produce less when they can sell goods and services at

• lower prices

• higher prices

• equilibrium price

• a changing price

Which of the following is not a characteristic of a command economy?

• competition

• centrally-planned economy

• central ownership of property and resources

• lack of consumer choice

Available resources and consumer preferences determine

• what is produced

• what is consumed

• what is purchased

• the price of the good or service