Econ Unit 1 Pretest

Factors of Production refers to (select all that apply):

• All the natural resources that are needed to produce goods and services.

• The skills and labor of human beings which are needed to produce of goods and services.

• The durable tools, factories, shops, machines needed to produce goods and services, as well as the $$ needed to purchase and operate these things.

• Individuals and groups who will invest their energy and risk their money to make the production of goods and services a reality.

• Land, Labor, Capital, and Entrepreneurs.

The economic goal that is concerned with people being able to access resources and opportunities in a more equal manner is called:

• Economic Freedom

• Economic Stability

• Economic Growth

• Economic Equity

The economic system that relies on ritual and custom to make decisions about scarce resources:

• Capitalist Economy

• Command Economy

• Traditional Economy

• Feudal Economy

The Economic System in which the central government sets quotas and directs the factors of production to meet those quotas.

• Capitalist Economy

• Command Economy

• Traditional Economy

• Feudal Economy

Another word for a market economy would be a:

• Command Economy

• Capitalist Economy

• Traditional Economy

• Feudal Economy

When we talk about a 'communist' government, we're usually describing this economic system:

• Market economic system

• Command economic system

• Feudal economic system

• Mercantilist economic system

We face trade-offs in business and in life because: (select all that apply)

• Scarcity is a fact of life.

• We have limited resources and unlimited wants and needs.

• Factors of production.

• Capitalism

Someone who takes risks to get land, labor, and capital together to make profit by producing a product or service is called:

• a government

• a consumer

• a landlord

• an entrepreneur

The 'invisible hand' refers to:

• government intervention and regulation.

• an unregulated market economy run by forces of supply and demand.

• the government ability to set prices for key resources like oil or bread.

• The customs and rituals that guide traditional economies.

Point F represents a production possibility that would be:

• Opportunity cost

• Efficient

• Inefficient

• Impossible