EPF Foundations Pre-Assessment

Which of the following is an example of a natural resource?

• A haircut

• A factory

• Coal

• A bank loan

Which is most likely to cause inflation?

• Too much money chasing too few goods

• A sudden increase in the supply of goods

• A decrease in demand

• A balanced budget

In communism, who owns the means of production?

• Private individuals

• The government or the community

• Foreign investors

• Nonprofit organizations

Which best describes specialization in economics?

• Producing all goods yourself to save money

• Focusing on producing one good or service efficiently

• Raising prices to increase profits

• Providing many different goods and services

Which situation shows a shortage?

• Shelves are stocked and no one is buying

• A store runs out of a product because demand is high

• A company lays off workers

• Prices fall due to competition

Which of the following is considered a capital resource?

• Fresh water

• Sunlight

• Wheat field

• Tractor

What is a likely result when the supply of a product decreases but demand remains the same?

• The price of the product decreases

• The government lowers taxes

• The product becomes less popular

• The price of the product increases

Which of the following best describes opportunity cost?

• The amount of goods produced

• The next best alternative given up when making a choice

• The money spent on a product

• The total profit from a business