Unit 1 Exam: Introduction to Economics

Front

Economics is the study of how people make choices about ways to use _______________ resources to fulfill their unlimited wants and needs.

Back

Limited

Front

Which of the following statements is true about scarcity? A. Scarcity is our inability to satisfy all of our wants. B. Scarcity problem arises because our wants are greater than resources available. C. The poor and the rich both face scarcity. D. All of the above.

Back

All of the above.

Front

WHAT ARE THE 4 FACTORS OF PRODUCTION?

Back

Land, Labor, Capital, Entrepreneurs

Front

Any technology/machinery involved in the production process:

Back

Physical Capital

Front

An individual's knowledge or skills that make production of a good/service more efficient

Back

Human Capital

Front

What are the three basic economic questions?

Back

What to produce? How to produce? For whom to produce?

Front

Economic system where government controls everything.

Back

Command

Front

Type of Economy that is half command and half market

Back

Mixed

Front

Which one of these characteristics of a market economy makes it the best for buyers? lack of choice, individual choice, competition, central ownership of property

Back

competition

Front

Which type of economic system bases its decisions on custom, habits and rituals?

Back

Traditional Economy