Fundamentals of Econ Review

The condition of scarcity can be described as one that

• afflicts only poor people and nations

• exists when our unlimited needs/wants exceed our limited resources

• exists when our limited resources exceed our unlimited needs/wants

• only applies to luxury items

The 4 Factors of Production (FOP) are

• rent for land, wages for labor, profit for capital, interest for entrepreneurship

• land, labor, capital, entrepreneurship

• land, labor, physical capital, financial capital

• land, labor, resources, profits

Why do entrepreneurs take risks?

• to set their own work hours

• to earn a profit for themselves

• to provide G/S to their customers

• to provide salaries and benefits to their employees

The crops and animals on a farm are examples of which factor of production?

• Land

• Labor

• Capital

• Entrepreneurship

__________ is the fundamental, universal, and perpetual economic problem that no one is immune to.

• price floors/price ceilings

• Scarcity

• Shortage

• the study of microeconomics

The difference between scarcity and shortage is

• scarcity is a natural & re-occurring condition; shortage is a man-made condition

• shortage only happens with new products

• shortage is a natural & re-occurring condition; scarcity is a man-made condition

• shortage is the fundamental, universal economic problem

Productive resources that make up the four categories of land, capital, labor, and entrepreneurs

• Factors of Production
• Profits
• trade offs
• specialization

An economic system in which supply, demand, and the price system help people make decisions and allocate resources

• Command Economy
• Market Economy
• Traditional Economy
• Socialism

A risk-taking individual in search of profits, this person uses the factors of production to produce a product or service

• Entrepreneur
• Profit seeker
• Producer
• Consumer

Natural resources or other "gifts of nature" not created by human effort

• Land
• Labor
• Capital
• Entreprenuer