Economics Quiz

Scarcity means that

• there are NOT enough resources to meet our demand or satisfy our wants

• there ARE enough resources to meet our demand or satisfy our wants

• We have a budget surplus

• advertising is expensive

Hammers and wrenches are an example of

• land

• labor

• capital

• entrepreneurship

Playing guitar in a group is an example of

• land

• labor

• capital

• entrepreneurship

Inventing a new microchip is an example of

• land

• labor

• capital

• entrepreneurship

The four factors of production are

• land, labor, capital, entrepreneurship

• machines, factories, tools, workers

• money, resources, facts, land

• land, money, factories, oil

The most desirable tradeoff, or the next best choice when making a decision, is

• labor

• trade off

• opportunity cost

• scarcity

Which of the following is NOT a characteristic of the American Free Enterprise?

• Economic Freedom

• Private Property

• Competition

• Government controls all resources

The three economic systems are

• Traditional, Socialism, Capitalism

• Traditional, Command, Market

• Communism, Socialism, Market

• Capitalism, Socialism, Communism

Who is the father of modern Economics?

• Adam Smith

• John Maynard Keynes

Which of the following are non-price determinants of supply?

• tastes and preferences and technology improvements

• price elasticity and command economies

• competition and opportunity costs

• income and competition