Economics Unit 1 Quiz 1

Both goods and services are counted as wealth.

• True

• False

Scarcity is an economic problem with which all societies are faced.

• True

• False

People’s wants and needs are limited.

• True

• False

Societies are faced with which three basic questions about production of goods?

• what, how, and why

• what, where, and when

• what, how, and for whom

• when, where, and for whom

A car is an example of a

• durable good

• nondurable good

• capital good

• service

Which of the following helps determine something’s value?

• utility

• beauty

• scarcity

• both A and C

What are the four factors of production?

• Technology, Labor, Management, Entrepreneurship

• Land, Capital, Labor, Entrepreneurship

• Land, Labor, Work, Profit

• Capital, Services, Trade, Labor

Which of the following is included in the "Land" factor of production?

• Human-made tools and equipment

• Natural resources that exist without human effort

• Factories and machines

• Money used to invest in businesses

Mason is setting up a new factory. Which of the following best describes the role of 'Capital' in his production process?

• Raw materials like wood and water

• Machinery, buildings, and technology used in manufacturing

• Labor force in various sectors

• Business owners who innovate and manage companies

Who are entrepreneurs in the context of the factors of production?

• Workers who produce goods and services in factories

• Risk-takers who introduce new products or services in search of profit

• Investors who provide capital for businesses

• Government officials who regulate businesses