Economics Midterm

Scarcity is.....

• The gap between unlimited wants and needs

• Unlimited resources with limited wants

• Not enough jobs for people who want them

• Unemployment

A tractor on a farm will be considers which factor of production?

• Land

• Labor

• Capital

• Entrepreneur

A farm owner is considered to be which factor of production

• Land

• Labor

• Capital

• Entrepreneur

A farm grows hay. This hay will be sold for feed. Which factor of production is this?

• Land

• Labor

• Capital

• Entrepreneur

A farm worker that is harvesting hay is considered to be which factor of production?

• Land

• Labor

• Capital

• Entrepreneur

If a point is outside the PPC curve, it is considered to be what?

• Inefficient

• Efficient

• Impossible

• Just a random point

Surplus occurs

• Any point below equilibrium

• Any point above equilibrium

A point below the PPC line is considered to be...

• Efficient

• Inefficient

• Impossible

• Improbably

What is a characteristic of a market economy?

• Voluntary exchange between buyers and sellers

• The government dictates how to buy/sell goods and services

• Tradition tells what job you have and how to conduct selling/trades

• There is no free choice, people receive what they get from the government.

What is a characteristic of a traditional economy?

• Voluntary exchange between buyers and sellers

• The government dictates how to buy/sell goods and services

• Tradition tells what job you have and how to conduct selling/trades

• There is no free choice, people receive what they get from the government.