ECO_Unit 1: Introduction to Free Enterprise

Front

What is the primary focus of the U.S. free enterprise system?

Back

Economic freedom and competition

Front

Which concept refers to the value of the next best alternative forgone when a decision is made?

Back

Opportunity Cost

Front

What are the resources required to produce goods and services called?

Back

Factors of Production

Front

Which economic system is characterized by minimal government interference and private ownership?

Back

Free Enterprise

Front

Who is known as the 'Father of Economics' and introduced the concept of the 'invisible hand'?

Back

Adam Smith

Front

What is the role of government in a free enterprise system according to the passage?

Back

To address market failures and promote equity

Front

Which economist critiqued capitalism and advocated for communism?

Back

Karl Marx

Front

What is the primary issue scarcity creates in economics?

Back

The need to make choices due to limited resources

Answer explanation

• Rationale: Scarcity forces individuals and societies to make choices because resources are finite, and not all wants can be satisfied. Choices involve trade-offs, leading to opportunity costs.

Tags

ECO.1A

Front

Which of the following best defines opportunity cost?

Back

The value of the next best alternative forgone

Answer explanation

Rationale: Opportunity cost refers to the value of the next best alternative that is not chosen, helping individuals and societies prioritize resource allocation.

Tags

ECO.1D

Front

Which factor of production includes tools and machinery?

Back

Capital

Answer explanation

Rationale: Capital refers to physical tools, equipment, and machinery used in production, differentiating it from other factors of production like labor and land.

Tags

ECO.1C