PFL Unit 1 Test

Economics is the study of how people use _______ to satisfy ___________.

• money, trends

• banks, credit requirements

• limited resources, unlimited wants and needs

• technology, social media

People must make choices because of _____________.

Another name for resources is ____________?

• production possibilites

• supply

• demand

• factors of production

A teacher, an app designer, a radiologist

These are all examples of

• Land

• Labor

• Capital

• Entrepreneurship

The following FOPs are correctly matched with their facor payment - T/F

Capital - Interest

Entrepreneurship - Profit

Land- Wages

Labor - Rent

• True

• False

A trade-off is what you ____________ when you make a choice.

Label the point where this economy would be producing inefficiently as point A.

At point A, how many environmental products is this society making?

• 5

• 25

• 5000

• 20,000

Almost all economies today are:

• Communist

• Socialist

• Traditional

• Mixed

In a market economy, decisions are made by __________. In a centrally planned economy, decisions are made by ______________.

• the stock market, labor unions

• individuals and firms, the government

• CEOs, voters

• the government, individuals and firms