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WorksheetsProduction of Goods and Services_Review Quiz
Total questions: 50
Worksheet time: 39mins
Why do producers enter a Free Enterprise Economy?
To make products
To seek profit
To provide income to lower class consumers
To create services for people
voluntary exchange
legal equality
private property
open opportunity
This is another name for capitalism
Free Contract
Free Enterprise
Infrastructure
Legal Equality
How do businesses respond when they face a loss in a free enterprise economy?
They ignore the loss and continue operations
They make changes to the product, customer values, and price
They discontinue operations.
They increase prices to make up for the loss.
What is the primary motivation for entrepreneurs to start a business?
To become billionaires
To fill a need or satisfy a want in the community
To gain fame
In the U.S. economy, over half of all businesses are (a) .
How do entrepreneurs such as Bill Gates and Steve Jobs impact the market?
They only benefit themselves
They change the way we work, play, communicate, and learn
They only impact a small number of people
Which of the following best describes the role of consumers in the economy?
They are responsible for directing the effort and resources that go into making goods and services.
They have no impact on the economy.
They only focus on meeting basic needs.
Which of the following best describes the relationship between consumption and saving in a household?
They are unrelated
They are directly proportional
They are inversely proportional
Which of the following best describes the role of government in a free enterprise economy?
Government heavily regulates businesses
Government plays a limited role
Government owns and operates all businesses
What is the main motivator for businesses to produce goods and services?
Helping others
Meeting the needs and wants of consumers
Altruism
What happens when the costs of doing business are greater than the revenue?
The business earns a profit
The business experiences a loss
The business remains unchanged.
What is the primary motivation for entrepreneurs to start a business?
To become billionaires
To fill a need or satisfy a want in the community
To gain fame
What does an economy provide to the people of a country?
Goods and services
Land, labor, capital and management
Money and factories
In capitalism, who owns property and businesses -- and keeps the profits?
private people
government
the poor
Which of these is a strong incentive to create products and services that people want?
helping others
generating profit
being creative
A person who starts, manages, and owns a business.
Entrepreneur
Entrepreneurship
Business
What are the tools, machines, and buildings used to produce other goods and services known as in the factors of production?
Entrepreneurial talent
Human Labor
Capital Resources
Human Resources
What are the physical and mental efforts of people used to create goods and services referred to as in the factors of production?
Entrepreneurial talent
Human Labor
Capital Resources
Synthetic Resources
The 4 factors of production are (a) (b) (c) (d)
An Entrepreneur is a person who takes a risk to...
get famous
earn a profit
create a product
find what they are looking for in life
A market economy is best defined as
An economic system with a central authority that makes major economic decisions
An economic system in which supply, demand, and the price system help people make economic decisions
An Economic system in which private citizens own and use the factors of production in order to generate profits.
An economic system that has some combination of traditional, command, and market activities.
Market
Factor of production
Money
Interdependent
What is the relationship between scarcity and choice-making?
Scarcity is the result of choicemaking
Choicemaking is not related to scarcity
Scarcity is the cause of choicemaking
Choicemaking eliminates scarcity
According to the first principle of economics, what is the cause of scarcity?
Unlimited wants
Abundant resources
Excess of choices
Reality of limited resources
If a consumer wants to buy a new car, the cost is (a) .
Which of the following best explains what is meant by tradeoff in every choice?
There is always a gain in every choice.
Every choice always has a cost.
There is no cost involved in making a choice.
What is the main factor that determines the opportunity cost of a choice?
The benefits of the choice
The third best option that is given up
The second best option that is given up
What is the role of incentives in predicting human behavior?
Incentives have no effect on human behavior
Incentives play a significant role in predicting human behavior
Incentives are unpredictable in their effect on human behavior
Incentives can only predict negative human behavior
What is the effect of positive incentives on people's behavior?
People are drawn to it
People do not respond to it
People move away from it
How do you satisfy your unlimited wants in a world of limited resources?
by making more money
by making choices
by stealing
by setting a budget
Show answersExplanationPreviousNext
Which of the following is an example of an disincentive?
A business owner offers a higher pay rate than his competitor.
The grocery store has a "buy-one-get-one" special.
Your teacher offers extra credit for students who offer peer tutoring services.
A restaurant charges a $5 fee for splitting an entree.
When two people or countries trade voluntarily, ________
they each have something the other one wants.
They should both think they are better off after the trade than before the trade.
No one forces them to make the trade.
ALL of the choices are correct.
Which of the following accurately lists the productive resources employed in the situation below?
A teenager working at a sandwich shop uses a meat slicer.
Labor and Entrepreneurship
Labor and Capital
Entrepreneurship and Land
Land and Capital
Entrepreneurs are considered the 4th factor of production because they...
take risks to bring together land, labor, and capital for produciton
Produce goods and services as wage laborers
Deciding whether to expand the physical size of a factory would be ...
A laborer making a decision about land
An entrepreneur making a decision about capital
a laborer making a decision about entrepreneurship
an entrepreneur making a decision about labor
Which of the following is not an example of labor as a factor of production?
Managing an assembly line in a factory
Playing chess as a hobby
Playing the violin in a concert
Painting a portrait for an art gallery
The business owner interviewing and hiring people is an example of
An entrepreneur making a decision about capital
An entrepreneur making a decision about land
An entrepreneur making decision about labor
Susan has a final exam tomorrow and needs to study, however, she is extremely tired and decides to go to bed early. What is Susan's opportunity cost?
More sleep
A better grade
Studying more
Going to bed early
Joyce is deciding whether to drive or take the bus to work. The bus would take 25 minutes, whereas driving would only take 15 minutes. She decides to save on gas and take the bus. What is Joyce's opportunity cost (in minutes) for taking the bus?
25 minute
15 minutes
40 minutes
10 minutes
As a consultant, you get paid $50 an hour. Instead of working one night, you decide to go to a football game. You end up paying $60 for the ticket, $35 for food/drinks and $35 for parking. You are also losing out on three hours of work. What is your opportunity cost (in dollars) for going to the football game?
$150
$130
$20
$280
Incentives are ______________
A set of external motivators that help people make choices.
Whatever you are giving up to do something.
The tension caused by infinite wants and finite resources.
The study of production, employment, prices, and policies on a nationwide scale
Which of the following is an INCENTIVE?
Wages for labor at a construction job sit
Passing a certification exam as a job requirement
Buying a candy bar during break
A college receiving monetary bonuses for a high graduation rate
The seatbelt law has helped protect drivers and passengers, but now there has been increase in pedestrian and cycle deaths. Why? Well maybe drivers feel more secure and therefore drive more aggressively.
Thinking at the Margin
Costs vs Benefits
Scarcity Forces Tradeoffs
Future Consequences Count
the idea that people respond to incentives in generally predictable ways
normative economics
Incentive
Economics
incentives-matter principle
Receiving the training necessary to perform a job is building what?
Entrepreneurship
Physical Capital
Human Capital
Labor
Students study for their unit one exam because they wish to pass the exam. Getting a good grade is a(n) _______. Where people respond to rewards and punishments in predictable ways.
Incentive
Rational Decision Making
Scarcity
Opportunity Cost
