Econ Chapter 1 Review

True or False - To obtain the things you want and need, you use both natural and human resources.

Which of the following are all factors of production?

• land, labor, and gross domestic product

• labor, service industries, and capital

• land, labor, and capital

• capital, service industries, and labor

Which of the following is are the three basic economic questions?

• What should be produced?

• How should it be produced?

• How should what is produced be distributed?

• What should it cost?

• How many should be made?

True or False: Employees are an example of capital.

What is an economy?

• A type of government
• A method for cooking food
• An economy is a system for managing resources and goods in a society.
• A form of entertainment

What is the difference between needs and wants?

• Needs are essential for survival; wants are non-essential desires.
• Needs are luxuries; wants are necessities.
• Needs can be ignored; wants must be fulfilled.
• Needs are temporary; wants are permanent.

What are the three kinds of economic resources?

• Natural

• Money

• Capital

• Human

Which are examples of capital resources?

• Workers

• Customers and shoppers

• Lumber, wood, metal, minerals

• Machinery, buildings, tools, and equipment.

What is the difference between goods and services?

• Goods are always free; services require payment.
• Goods are intangible; services are tangible.
• Goods are tangible, physical products; services are activities.

• Goods are provided by machines; services are provided by people.

What are some examples of services?

• Banking, insurance, and real estate services.
• Manufacturing, agriculture, and mining services.
• Consulting, cleaning, transportation, and education services.
• Retail, hospitality, and entertainment services.