Unit #1 Check for Understanding (Economics)

Front

Which of the following is NOT considered a factor of production in economics? Land, Labor, Capital

Back

Money

Front

What does the term "scarcity" refer to in economics?

Back

Limited resources and unlimited wants

Front

In the circular flow model, households provide which of the following to firms?
Options:
Goods and services,
Factors of production,
Government regulations,
Taxes

Back

Factors of production

Front

What is opportunity cost?

Back

The value of the next best alternative forgone

Front

Which of the following is an example of capital as a factor of production? A factory building, A forest, A worker, A business owner

Back

A factory building

Front

Which of the following best describes a mixed economy? Options: Only the government makes economic decisions, Only individuals make economic decisions, Both government and individuals make economic decisions, There are no economic decisions

Back

Both government and individuals make economic decisions

Front

In the circular flow model, what do firms supply to households?

Back

Goods and services

Front

Which of the following is an example of a command economy? United States, North Korea, Canada, Australia

Back

North Korea

Front

Which factor of production is associated with risk-taking and innovation?

Back

Entrepreneurship

Front

If a country decides to produce more military goods and fewer consumer goods, what is the opportunity cost?

Back

The consumer goods forgone