Unit 1 Quiz Economics Fundamentals

Which term would be used to describe the steel used to construct a bridge?

• land

• labor

• capital

• entrepreneurship

What is capital?

• human-made skills, knowledge and machines used in production

• natural resources needed to produce a good or service

• money needed for purchasing factors of production

• the work to be done when making a good or service

What is being defined here: Limited resources which cannot satisfy unlimited wants.

• shortage

• profit

• scarcity

• production

What kind of economy does the United States have?

• traditional economy- based on culture and customs

• command economy- based on government

• market economy- based on supply and demand

• mixed economy- based on command and market

Entrepreneurs are MOST motivated by which of the following....

• prestige

• philanthropy

• profit

• production

Which of these are examples of scarcity and NOT shortage?

• clean water available for drinking

• crude oil available for gasoline production

In this economic systems the government decides what will be produced, how it will be produced and who will receive the products.

• traditional

• command

• market

• mixed

Which of the following allocation strategies are NOT seen in market economies?

• price

• first-come, first serve

• force

• supply and demand

Mr. Luigi owns a pizza restaurant. He has a delivery truck, cash registers, and ovens. Tomatoes, flour, mushrooms, and water are some of the ingredients he needs to make the pizza. Antonio, Mario, and Francis are his employees. Match each component to its' factor of production

• Entrepreneur

• Antonio, Mario, and Francis

• Land

• Mr. Luigi

• Capital

• Tomatoes, flour, mushrooms, water

• Labor

• Delivery truck, cash registers, ovens