Economics Review #3

1. The law of supply states that producers are willing and able to supply more of a good or service at _________ prices and

2. supply less of a good or service at __________ prices.

• higher, higher
• lower, higher
• higher, lower
• lower, lower

2. What type of resource occurs commonly in and on the earth and is used to produce goods and services?

• Human resources

• Intermediate goods

• Natural resources
• Capital resources

• Human capital

2. What type of resource includes people who do mental and/or physical work to produce goods and services?

• Natural resources

• Intermediate goods

• Capital resources

• Human resources

What type of resource includes goods that are made by people and used to produce other goods and services, such as factories, tractors, or printers?

• Human resources

• Natural resources

• Capital resources

• Financial resources

Which definition best describes the term "intermediate goods"?

• Goods that are found naturally in or on the Earth.

• Goods that are made by people that become part of another good or service, such as plastic, flour, or thread.

• Knowledge and skills obtained through years of education, training, and experience.

• Goods that are made by people that are used in the production of other goods, such as factories and machinery.

Match the following terms to their definitions:

• Cost of Production

• The amount of money that is left after a business pays its cost of production.

• Revenue

• Money received from selling a product

• Profit

• The amount producers pay for the productive resources and intermediate goods used to produce a product.

Jamal knits hats to sell at a local craft fair. The cost to produce one hat is $3.00. If Jamal sells his hats for $8.00 each, how much profit will Jamal make per hat sold?

• $10.00
• $2.00
• $6.00
• $5.00

Organize these options into the right categories:

Groups:

(a) Natural Resources

,

(b) Capital Resources

,

(c) Human Resources

,

(d) Intermediate Goods

• Machinery

• Teachers

• Ink

• Tractors

• Water

• Fish

• Factories

• Thread

• Minerals

• Factory Workers

• Flour

• Chefs

• Tools

• Computer Chips

• Doctors

• Trees