Spring Economics Final Review

Tools we use to make products

• capital resources
• human resources
• natural resources
• entrepreneurs

A person who buys goods and services

• consumer

• entrepreneur

• resource

What is a need?

• Nothing
• Something that is required for survival

• Something you would like to have
• Ice cream

What is a want?

• A person
• Something you would like to have but don't need to live
• Purple
• Something you need to live

Factors of production are grouped into four categories:

• land, labor, capital, entrepreneurship

• land, labor, capital, money

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

• Land

• Labor

• Capital

• Entrepreneurship

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

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

The limited availability of resources is known as...

• Scarcity

• Voluntary Exchange

• Profit

• Opportunity Cost