Unit 3 Economics Test

what is an example of an incentive for a worker/employee?

• status

• money

• consistent schedule

productivity is what the worker outputs

• taxes

• work

• productivity

how do we measure economic growth

• gross domestic product (GDP)

• profits

• taxes

all goods and services produced in one year

• physical capital

• gross domestic product

• gross domestic product per capita

if the total output of a country is completely divided equally among each US citizen

• taxes

• gross domestic product per capita

• gross domestic product

tools that workers use to make products

• tools

• physical capital

• capital gain

goods and services can also be called

• inputs

• outputs

• superficial gains

incentive for consumers

• saving money

• spending more money

• having nice things

how do inventors differ from entrepreneurs

• inventors do not make a profit

• entrepreneurs do not make money

• inventors sell the product

how to calculate profit

• profit = total cost - total revenue

• profit = total revenue - total cost

• cost = total revenue - profit