(Practice Test) Foundations of Economics

Clothing, food, toys, and electronics would all be considered.

• Immaterial Goods
• Consumer Goods
• Capital Goods
• Non-Durable Goods

Companies need more land than financial capital, in order to be successful.

• True
• False

Which of the following illustrations would represent capital in the factors of production?

• 
• 
• 
• 

Something that is found in nature and can be used by people

• Natural resource
• Human resource
• Capital resource
• Entrepreneurs

A benefit, profit, or value of something that must be given up to acquire or achieve something else

• Production
• Opportunity cost
• Supply
• Scarcity

Analyze the illustration below: which of the following vocabulary terms would BEST describe the image?

• Scarcity
• Opportunity Cost
• Factors of Production
• Alternatives

Something that motivates an individual to perform an action.

• Supply
• Demand
• Price
• Incentive

Which of the following word(s) sums up the study of economics?

• Money
• Scarcity
• Freedom
• Choices

What is the one thing that exists in both loops of the Circular Flow Model?

• Money
• Products
• Resources
• Taxes

Which of these is NOT one of the 3 Basic Economic Questions?

• What to produce?
• How to produce?
• Where to produce?
• For whom to produce?