Unit 1: Principles of Economics

James is having trouble finding a suitable location for his business. Which of the factors of production is an issue for James?

• labor

• land

• capital

• production

How did the theories of Adam Smith (capitalism) influence the development of the United States?

• By encouraging income equality, wealth redistribution, and social welfare programs.
• By supporting protectionism, trade barriers, and government subsidies for industries.
• By promoting free market principles, individual economic freedom, and limited government intervention.
• By advocating for a command economy, centralized planning, and government control over businesses.

Which 3 questions does any economy need to answer?

• What to produce? How to sell? For whom to produce?
• What to produce? How to produce? For whom to produce?
• What to sell? How to sell? For whom to sell?
• What to consume? How to consume? For whom to consume?

Which economic system relies on providing for the needs of the collective, or group?

• Traditional

• Mixed

• Command

• Free-Market

Which economic system relies on orders from those in charge?

• mixed

• command

• free-market

• traditional

Which economic system is in use by most successful economies today?

• mixed

• free-market

• command

• traditional

Which economic system emphasizes freedom for producers and consumers to choose items to meet their needs without government involvement?

• free-market

• traditional

• mixed

• command

Who is Karl Marx and what did he pioneer?

• an economist who criticized capitalism and promoted the idea of socialism

• an economist who promoted the idea of traditional economies

• an economist who promoted the idea of mixed economies

• an economist who promoted the idea of free-market capitalism

What is the term used to describe the limited nature of any specific resource?

• trade-offs

• scarcity

• public goods

• capital

In economics, what is "capital"?

• land owned by a person or organization

• the person or organization in charge of a corporation

• assets owned by a person or organization

• the headquarters of a corporation