Production, Distribution and Consumption

What term is used to describe the process of creating goods and services?

• consumption

• distribution

• production

• marketing

What economic concept describes the situation where there are limited resources to meet unlimited wants?

• scarcity

• abundance

• inflation

• surplus

What term describes the process or activity of using goods and services?

• production

• consumption

• investment

• distribution

What is the study of how to meet unlimited, competing wants with limited resources?

• sociology

• anthropology

• geography

• economics

Which term refers to the physical and mental effort that individuals contribute to the production of goods and services?

• capital

• labor

• technology

• land

Which term describes the human resource that organizes and combines labor, land, and capital to produce goods and services?

• entrepreneurship

• land

• labor

• capital

Which term refers to a measure of the amount of output produced by a given amount of inputs?

• capacity

• efficiency

• profitability

• productivity

What is the term for the funds that a firm uses to purchase physical capital?

• physical capital

• financial capital

• human capital

• social capital

What is the term for the money remaining from selling a good or service after covering the cost of purchasing productive resources?

• revenue

• investment

• profit

• capital gain

What is the term for intangible offerings that can be sold?

• commodities

• services

• goods

• assets