AG Unit 8 Formative Assessment 2024-25

What is capitalism primarily defined as?

• A government-controlled trading system

• A society with complete economic equality

• An economic system with shared ownership

• An economic system based on private ownership

What do economists call the basic resources needed for any economy?

• Supply and demand

• Economic freedoms

• National property

• Factors of production

What is included in the economic definition of land?

• Only forests and farms

• All water resources except oceans

• Only the ground under buildings

• Natural resources used for economic purposes

What does the term 'labor' refer to in economics?

• The hours spent working per week

• Only work done in factories

• Machines used in production

• People who perform work in various industries

What is capital in economic terms?

• A state’s revenue from taxes

• Natural resources from the land

• Government subsidies for goods

• Human-made resources used in production

What term describes the buildings, machines, and computers used in production?

• Natural capital

• Intellectual property

• Financial resources

• Physical capital

Who is considered a capitalist?

• A person who earns hourly wages

• A citizen of a free country

• A consumer in the market

• Someone who owns and uses capital

What best describes an entrepreneur?

• An employee in a factory

• Someone who rents property to others

• A government official in charge of taxes

• A person who risks resources to produce goods or services

What is another name for a capitalistic system?

• Free Enterprise System

• Centralized Economy

• Command Economy

• Free Enterprise System

What allows buyers and sellers to operate freely in a capitalist system?

• Government permits

• Trade quotas

• Tax incentives

• Freedom to buy and sell