SSEF1 and SSEF2 Common Assessment Review

What is the basic problem that all economies must deal with?

• How to satisfy limited wants with limited resources

• How to satisfy limited wants with unlimited resources

• How to satisfy unlimited wants with limited resources

• How to satisfy unlimited wants with unlimited resources.

The BEST explanation of why there will always be scarcity is because

• People and their tools are inefficient

• Natural disasters create frequent shortages

• Governments create scarcity to keep people wanting more

• While peoples' wants are unlimited, resources are limited

In a free enterprise system, what motivates individuals to start a business?

• The risk of failure

• The need for job security

• The desire to earn a profit

• The desire to make economic decisions

When a society invests in education, how is it improving productivity?

• By investing in the future

• By investing in human capital

• By investing in capital goods

• By investing in entrepreneurship

The factors of production (land, labor, capital, and entrepreneurship) go into making all things that are made to be sold to you. Which of these is an example of "labor"?

• Money

• Hammer

• Gold mine

• Police officer

Mr. Green is opening a new bakery. He has purchased an industrial oven which can accommodate twenty loaves of bread at a time. This oven represents which factor of production?

• Capital

• Entrepreneurship

• Labor

• Land

Which example of productive resources is matched correctly?

• Land and surgeon

• Capital and oil rig

• Labor and telephone wire

• Entrepreneurship and rice field

The study of how individuals, institutions, and society make choices under the conditions of scarcity is

• allocation

• deregulation

• economics

• specialization

Which correctly identifies a NEED as opposed to a want or desire?

• I need a new pair of jeans.

• John really needs a haircut!

• We all need a certain amount of water.

• Kira needs to call her mom to come get her.

Which of these terms is the BEST synonym for the word "entrepreneur"?

• "business owner"

• "home owner"

• "employee"

• "student"