Fundamentals Test Review

Match the following

• Labor

• 
• Land

• 
• Entrepreneur

• 
• Captial Goods

• 

Scarcity is defined as a limited supply of resources and...

• limited wants for those resources

• unlimited resources

• limited resources

• unlimited wants for available resources

Which of the following are the reasons for a potential economic growth to occur?

• Quality of education improved

• Better technology used

• Household's income level increase

• Discovery of new resources

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

When two people engage in trade, both sides will benefit if the trade meets which requirements?

• voluntary, non-fraudulent, and better off after the trade

• non-voluntary and fraudulent

• free and international

• rational and marginal

An individual's knowledge or skills that make production of a good/service more efficient

• Human Capital
• Physical Capital
• Investment Capital
• Enterprise Capital

_____ is a measure of how efficiently resources are used to create products.

• standard of living

• productivity

• competition

What is a Command Economy?

• CAPITALISTIC economy in which there is free competition and prices are determined by interaction of supply and demand

• An economic system COMBINING private and public enterprise.

• When production, investment, price, and income are determined centrally by a GOVERNMENT.

• A system that relies on customs, history, and time-honored beliefs.

Reduces extreme ups and downs in our economy and helps to keep prices from changing too quickly; strongest in a command economy

• security

• growth

• full employment

• stability

When an economy focuses on having jobs for all individuals willing and able to work this is known as:

• Sustainability
• Full Employment
• Efficiency
• Security