Macroeconomics: Topic 1.1

Which of these is TRUE about economics?

• It's resources are classified into four categories called the Factors of Production.

• It is concerned with concerned with how scarce resources are allocated among unlimited wants, needs, and desires.

• It analyzes human behavior and decision-making.

• It is the study of decisions only at the individual level.

Which of these are the four factors of production?

• Money, labor, capital, and entrepreneurship

• Trade, labor, capital, and entrepreneurship

• Land, labor, capital, and entrepreneurship

• Trade, land, labor, and capital

Which of these refers to natural resources?

• Land

• Labor

• Capital

• Entrepreneurship

Which of these refers to the workers?

• Land

• Labor

• Capital

• Entrepreneurship

Which of these refers to the things we used to make the other things?

• Land

• Labor

• Capital

• Entrepreneurship

Which of these refers to the ability to figure out ways to solve problems using the other three factors of production?

• Land

• Labor

• Capital

• Entrepreneurship

Payment for land is called...

• Profit

• Rent

• Interest

• Wage

Payment for labor is called...

• Profit

• Rent

• Interest

• Wage

Payment for entrepreneurship is called...

• Profit

• Rent

• Interest

• Wage

Payment for capital is called...

• Profit

• Rent

• Interest

• Wage