Intro. to Economics Test Q1

What is the main purpose of a market?

• To provide a place for buyers to spend time

• To allow for the exchange of products

• To provide jobs for sellers

• To provide a method to raise government taxes

In school it is important to learn about ______________________ because we are all involved in buying goods and services.

• Economic System

• History

• Economics

• Politics

The employees at the hospital are considered __________________________________.

• Factors of Production

• Natural Resources

• Human Resources

• Capital Resources

The central problem in economics is:

• Government

• Busineseses

• Scarcity

• Opportunity Cost

Trucks and boats help with the __________________________ of goods.

• Consumption

• Production

• Distribution

• Factors of Production

True/False: The economic systems of different countries are connected.

• True

• False

Which type of economy has the MOST government involvement?

• communism

• free-market

• capitalism

• socialism

It is something essential to staying alive.

• wants

• needs

• services

It is something nice to have, but it is not necessary to stay alive.

• wants

• needs

• services

When you buy a good or service, you are a _________________.

• seller

• consumer

• producer