Daily Review Lesson 3.2

What are goods?

• Intangible activities provided by others
• Physical items that can be bought or sold
• The use of money in exchange for value
• Policies that govern economic systems

Services are physical items that can be bought or sold.

• True
• False

What does the law of supply state?

• As price decreases, quantity supplied increases
• As price increases, quantity supplied increases
• As demand decreases, supply increases
• Supply remains constant regardless of price

The point where supply and demand meet is called the _______.

• demand
• equilibrium
• supply
• market

Which of the following is NOT a natural resource?

• Water
• Oil
• Factory equipment
• Timber

Capital resources include tools, machinery, and buildings used in production.

• True
• False

What does demand refer to in economics?

• The total amount of goods and services available
• The amount of a product consumers are willing and able to purchase at different prices
• The production process of goods and services
• The labor needed to produce goods and services

The three types of economic resources are natural resources, _________, and labor.

• capital
• wealth
• investment
• money

What is the primary role of labor in the production process?

• To provide capital for investment
• To supply raw materials
• To perform the work needed to produce goods and services
• To regulate market prices

Equilibrium price is the price at which the quantity of goods supplied equals the quantity of goods demanded.

• True
• False