Economics & Personal Finance FINAL

What term refers to the principle that society has limited resources and therefore cannot produce all the goods & services people wish to have?

• inefficiency

• inequality

• scarcity

• market failure

Economics is the study of how society manages its

• limited wants and unlimited resources

• unlimited wants and unlimited resources

• limited wants and limited resources

• unlimited wants and limited resources

In economics, the term "physical capital" refers to...

• the finances necessary for firms to produce their products

• buildings and machines used in the production process

• the money households use to purchase firms' output

• stocks and bonds

Which of the following is NOT a factor of production?

• Land

• Labor

• Human Capital

• Money

Which of the following is "human capital" necessary for producing a new video game?

• Slaves

• Knowledge regarding programming languages

• Hammers & Screw Drivers

• Carrots

Which of the following is an example of "land" necessary to produce "steel."

• Iron Ore

• How should I know where they produce steel?

• The Pittsburgh Steelers

• Factories

Today, the United States uses an economic system in which individuals make decisions about the "private property" they own, including the use of "money" as a medium for exchanging property. Based on this information, we can conclude that today the U.S. has a...

• Traditional Economy

• Market Economy

• Command Economy

What type of economy involves a powerful government which owns all the "means of production" and makes all decisions regarding society's resources.

• Traditional Economy

• Market Economy

• Command Economy

What is labor?

• Hard Work

• People who only do the physical work.

• People who do the work to produce something.

• None of the above.

What is entrepreneurship?

• Shipping of products and services.

• Starting or improving a business.

• Improving needs and wants.

• All of the above.