Unit One Economics Assessment

What are the factors of production?

• Land, Technology, Dirt, Resources

• Land, Labor, Capital, Entrepreneurship

• Land, Labor, Entrepreneurship

• Resources used in the production of only services

A teacher gives extra credit if a student completes a test study guide... This is an example of ?

• Voluntary Exchange

• Freedom of Choice

• Positive Incentives

• Negative Incentives

A student must decide between going to the movies with friends or staying home and studying for a final exam. She chooses to stay home and study. Which economic concept describes going to the movies in this scenario?

• Comparative Advantage

• Equilibrium Point

• Income Effect

• Opportunity Cost

What would be an example of a capital resource

• water

• trees

• business owner

• school building

What is the fundamental economic problem that all societies face?

• Abundance of resources
• Scarcity of resources
• Equal distribution of resources
• Unlimited resources

Which of the following is an example of a need?

• Smartphone
• Shelter
• Designer clothing
• Vacation

In a hypothetical country, the government is in control of resources and production, and everything is centrally planned. What type of economic system does this country follow?

• Market economy

• Traditional economy

• Command economy

• Mixed economy

In a supermarket, what primarily determines what products are stocked on the shelves?

• Consumer demand and supply

• Government directives

• Custom and tradition

• Central planning

Which economic system is characterized by private ownership of resources and competition in the marketplace?

• Capitalism
• Socialism
• Communism
• Mixed economy

In a command economy, who typically makes decisions about what and how much to produce?

• Private businesses
• Consumers
• Government authorities
• Market forces