Factors of Production and Economic Concepts

What is Scarcity?

• Unlimited resources and wants

• Limited resources and unlimited wants

• Having enough resources to meet all needs

• Overproduction of goods

What are the four factors of production?

• Money, resources, labor, entrepreneurship

• Land, labor, capital, entrepreneurship

• Demand, supply, resources, profit

• Workers, machines, land, taxes

What is opportunity cost?

• The money spent on producing a product

• The time it takes to make a decision

• The total cost of all choices

• The value of the next best alternative given up

What happens to the price of a good when demand increases but supply remains the same?

• The price decreases

• The price increases

• The price stays the same

• The supply decreases

What is the law of supply?

• Producers will sell less at higher prices

• Producers will sell more at higher prices

• Consumers will demand less at higher prices

• Supply equals demand at all times

What is equilibrium in a market?

• When demand is higher than supply

• When supply is higher than demand

• When supply equals demand

• When prices are constant over time

What are the three main types of economic systems?

• Capitalist, socialist, mixed

• Traditional, command, market

• Industrial, agricultural, mixed

• Private, public, communal

What type of economic system does the United States have?

• Market economy

• Command economy

• Traditional economy

• Mixed economy

What is a monopoly?

• A market with many sellers

• A market with only one seller

• A market with identical products

• A market with government control

What is the difference between perfect competition and monopolistic competition?

• Perfect competition has identical products; monopolistic competition has similar but differentiated products

• Perfect competition has many sellers; monopolistic competition has only one seller

• Perfect competition is government-regulated; monopolistic competition is not

• Perfect competition is common in real life; monopolistic competition is rare