Unit 1 Economics Review

Claire loaded her truck with vegetables from her garden to sell at a local market. Which of the following BEST describes Claire’s truck? 

• Land resource

• Human resource

• Capital resource

• Natural resource

Use the information to answer the question. 

Alexa  had a pen, but she wanted a pencil. Dylan  had a pencil, but wanted a pen. They voluntarily exchanged the pen and the pencil with each other.

Who benefited from this voluntary exchange?

• only Alexa benefited

• both Alexa and Dylan benefited

• 1. only Dylan benefited

•  neither Alexa nor Dylan benefited

1. Which of these is an example of a human resource?

• a river

• a computer

• a teacher

• a forest

Jimmy wants to open his own car repair shop. He has plenty of workers, but he does not have a building. What type of resource is the building?

• Capital resource

• Land resource

• Natural resource

• Human resource

On weekends, Josh pulls his lawnmower behind his bike and mows people's lawns for $20. Which of the following BEST describes Josh?

• Josh is a natural resource

• Josh is an entrepreneur

• Josh is a competitor

• Josh is a natural resource

Why are entrepreneurs called “risk-takers”?

• 1. because they will be successful at their new business

• 1. because they could lose all of their money starting a new business

• because they get charged more taxes than other business owners

• 1. because they combine land, labor, and capital to start a new business

What does the government do with taxes?

• take away citizens’ rights

• 1. stop building schools and roads

• 1. provide services to citizens

• keep citizens from having any fun

Why is trade with other countries important?

• 1. because it makes shopping harder

• 1. because it protects the environment from pollution

• 1. because it helps entrepreneurs take risks

• because it gives customers more choices.

Which of the following is paid for with money collected through taxes?

• bank

• public library

• restaurant

• shopping mall

Which of the following BEST completes the graphic?

• Consumers pay taxes to producers

• Consumers loan money to producers

• Consumers buy the goods of producers

• Consumers make goods for producers