Warmup 27th and 28th

Resources are factors of production that are used in the production of goods and services. Select all examples of resources.

• production

• capital

• supply

• natural

• human

Which term below is a selection of an item or action from a set of possible alternatives?

• opportunity cost

• choice

• production

• consumption

Which term below is what is given up when a choice is made (the second-best alternative)?

• opportunity cost

• choice

• production

• consumption

Which term below is the using of goods and services?

• opportunity cost

• choice

• production

• consumption

Which term below is the combining of human, natural, capital, and entrepreneurship resources to make goods or provide services?

• opportunity cost

• choice

• production

• consumption

What are the three basic questions of economics? (Select 3.)

• How will it be produced?

• When will it be produced?

• Why will it be produced?

• For whom will it be produced?

• What will be produced?

Which of the following statements are TRUE regarding a traditional economy?

(Select 2.)

• Economic decisions are based on supply and demand.

• Economic decisions are based on custom and historical precedent.

• People often perform the same type of work as their parents and grandparents, regardless of ability or potential.

• People choose their careers based on skills and preferences.

Which of the following are characteristics of a

command economy?

(Select all answers that apply.)

• profit motive

• consumer choice

• central ownership of property and resources

• centrally-planned economy with little consumer choice

• competition

Some of the profits a business makes are often used to buy more -

• interest

• taxes

• resources

• goods and services

Who uses tax revenue to provide public goods and services?

• Government

• Households (Individuals)

• Businesses

• Corporations