Economics Study Guide

Which of the following is NOT a category of factors of production?

• A) Land

• B) Labor

• C) Capital

• D) Consumption

Fill in the blank: Natural resources such as water, minerals, and forests are examples of ________ as a factor of production.

• Land

• Labor

• Capital

• Entrepreneurship

Fill in the blank: Human effort and skills used in production are referred to as ________.

• Labor

• Capital

• Land

• Entrepreneurship

Fill in the blank: Tools, equipment, and buildings used to produce goods/services are called ________.

• Capital

• Labor

• Resources

• Technology

Fill in the blank: Risk-takers who combine the other factors to create goods/services are known as ________.

• Entrepreneurship

• Labor

• Capital

• Land

What does 'Self-Interest' mean in the context of a market economy? Fill in the blank: Individuals act in their own ________ interest.

• best

• worst

• public

• shared

Which characteristic of a market economy encourages efficiency and innovation?

• Self-Interest

• Competition

• Private Property

• Limited Government Involvement

Fill in the blank: In a market economy, individuals own resources and businesses. This is known as _________.

• Private Property

• Public Ownership

• Collective Bargaining

• Government Control

Fill in the blank: Consumers and producers making their own decisions is called ________ of Choice.

• Freedom

• Limitation

• Restriction

• Obligation

Fill in the blank: The government plays a minor role in a market economy. This is called ________ Government Involvement.

• Limited

• Extensive

• Total

• Absolute