Economics Unit Review

______________________is the study of how individuals and businesses make decisions to best satisfy wants, needs, and desires with limited resources

• Business

• Economics

• Marketing

• Accounting

The study of how individual businesses, households, and consumers make decisions to allocate (distribute) their limited resources in the exchange of goods and services.

• Economics

• Microeconomics

• Macroeconomics

• Business

     The study of the behavior of the overall economy. Economy-wide occurrences, such as changes in unemployment, interest rates, inflation, and price levels, are all a part of this study.

• Economics

• Microeconomics

• Macroeconomics

• Business

    What should be produced? How should we produce it? And Who will buy the goods and services are:

• The scarcity questions

• The principles of macroeconomics

• The principles of microeconomics

• The three basic economic questions

   Which of the following are the factors of production?

• Labor, land, capital, and entrepreneurship

• Labor, capital, motivation, and natural resources

• Land, entrepreneurship, capital, and creativity

• Labor, profits, technology, and motivation

How would a tractor be classified in the factors of production?

• Land

• Labor

• Capital

• Entreprenuership

   Which resource is not classified as a land/natural resource?

• Two thousand acre forest

• A hydroelectric dam

• Crude oil reserves

• The Mississippi

What is the term for the individual that brings the other economic resources necessary for production together? The person who assumes the risk for owning/operating a business.

• Corporate shareholder

• Manager

• Entrepreneur

• Worker

What factor of production includes any form of human effort exerted?

• Land

• Labor

• Capital

• Entrepreneurship

     Which of the following is NOT one of the four factors of production?

• Land

• Labor

• Shelter

• Entrepreneurship