Economics Recap

What is the primary focus of economics as a social science?

• The study of government policies

• The allocation of scarce resources

• The analysis of business profits

• The examination of historical trends

Which of the following best describes the concept of scarcity in economics?

• The abundance of resources in a wealthy economy

• The limited availability of goods in a store

• The infinite wants of consumers in a market

• The limited resources relative to unlimited wants

What is opportunity cost?

• The monetary cost of a good or service

• The benefit of the next best alternative forgone

• The total cost of production

• The selling price of a product

Which of the following in order is considered the main factors of production?

• Land, capital, labor entrepreneur

• Labor, entrepreneur, land, capital

• Capital, land, entrepreneur, labor

• land, labour, capital, entrepreneur

What economic system relies primarily on market forces to allocate resources?

• Command economy

• Traditional economy

• Mixed economy

• Free market economy

Why might a government intervene in an economy?

• To increase market competition

• To correct market failures and ensure economic stability

• To eliminate all forms of business

• To ensure all businesses are state-owned

Which factor of production is characterized by human effort?

• Capital

• Labor

• Land

• Entrepreneurship

What is the role of an entrepreneur in an economy?

• To provide labor

• To organize and manage resources for production

• To supply natural resources

• To save money