Second Semester Test Review (Part 2)

What factor of production results in an exchange of payment?

• capital

• labor

• expansion

• contraction

What factor of production leads to new ideas or products that often come with a risk of failure?

• labor

• supply & demand

• scarcity

• entrepreneuers

Why are some products more difficult for consumers to find?

• scarcity

• surplus

• abundance

• overproduction

Things like tools, trucks, machines, and factories fall under the category of which factor of production?

• natural resources

• capital

• labor

• entrepreneurs

Which economic system allows individuals and businesses to make their own economic decisions with little government interference?

• traditional

• command

• market

• communist

What happens when individuals or businesses produce a narrow range of products?

• competition

• specialization

• incentives

• profit

What allows precise, flexible pricing of goods and services?

• medium of exchange

• store of value

• unit of account

• interest rate

What helps determine how much businesses & individuals can charge for goods and services?

• supply & demand

• scarcity

• labor

• capital

How do banks allow people to borrow money?

• checks

• drafts

• loans

• lending

A Spanish governor who was appointed by the king of Spain was called what?

• el capitan

• viceroy

• head honcho

• manager