Economic Basics Review (unit 2)

What is scarcity?

• Abundance of resources in relation to limited wants and needs
• Equal distribution of resources to meet all wants and needs
• Limited availability of resources in relation to unlimited wants and needs
• Unlimited availability of resources in relation to limited wants and needs

Who is a producer of services? (select all that apply)

• Rachel, an auto mechanic

• Dan, a car salesman

• Rodrigo, a carpet cleaner

• Baylee, a nail technician

Which action is NOT something that money does in an economy?

• measure the value of commodities 

• store the value of commodities   

• keep the rate of inflation low        

• allow producers and consumers to trade commodities

In what way is the teenage market categorized?

• commodity

• price

• location

• consumer

Which is a feature of a weak economy?

• High unemployment, low consumer spending, and slow economic growth
• High unemployment, high consumer spending, and fast economic growth
• Low unemployment, low consumer spending, and fast economic growth
• Low unemployment, high consumer spending, and fast economic growth

Which economic system has the most government control?

• Free market economy
• Capitalist economy
• Mixed economy
• Planned economy

Which characteristic is a feature of capitalism?

• Centralized planning of the economy
• Equal distribution of wealth
• Private ownership of the means of production
• Government control of the means of production

Which kind of motive does a company that is most motivated to make money have?

• Financial or economic
• Social
• Environmental
• Philanthropic

Which type of competitors are a store that sells books and a store that sells tools?

• non competitors

• Indirect competitors
• direct competitors

• complementary competitors

What is capital as a factor of production?

• Physical assets used in the production process
• Natural resources used in production
• Human resources in a company
• Money used for personal expenses