JC Introduction to Economics

What is an economy?

• A system of individuals, organisations, and governments that produces, sells, and buys goods and services

• A system of individuals and organisations that produces goods only

• A system of organisations that buys goods and services

• A system of individuals and governments that sells goods and services

What are factors of production?

• Resources used to provide services only

• Resources used to produce goods only

• Resources used to buy goods

• Economic resources used to produce goods and provide services

What is the basic economic problem?

• Unlimited needs and wants with limited economic resources

• Limited needs and wants with unlimited economic resources

• Unlimited needs and wants with unlimited economic resources

• Limited needs and wants with limited economic resources

What is scarcity?

• The balance between needs and wants and resources

• The abundance of resources compared to needs and wants

• The gap between unlimited needs and wants and limited economic resources

• The equal distribution of resources and needs

What is an economic system?

• How a country controls its economic resources to produce goods and services

• How a country controls its population

• How a country controls its natural resources

• How a country controls its imports and exports

What is a free economy?

• An economy in which anyone is free to make decisions about the production of goods or services

• An economy in which decisions are made by individuals only

• An economy in which decisions are made by the government only

• An economy in which decisions are made by private businesses only

What is a mixed economy?

• An economy in which the government controls all production

• An economy in which individuals control all production

• An economy in which private businesses control all production

• An economy in which the government and private business share the production of goods and services

What is a controlled economy?

• An economy in which the government has total control of the production of goods and services

• An economy in which individuals have total control of production

• An economy in which production is controlled by a mix of government and private businesses

• An economy in which private businesses have total control of production

What is land in terms of factors of production?

• All the natural resources available in a country for use in the production of goods and services

• All the human-made resources available in a country

• All the workers available in a country

• The actions of the person or business that brings together resources

What is labour in terms of factors of production?

• The actions of the person or business that brings together resources

• All the workers who are available in a country to help produce goods and services

• All the natural resources available in a country

• All the human-made resources available in a country