Economic Fundamentals Study

Which of these most directly contributes to the problem of economic scarcity?

• People have unlimited wants for goods and services.

• People must earn money to provide for their families.

• People have to pay taxes to governments for services.

• People must take risks to create and improve technology.

How could a lack of entrepreneurs affect an economy?

• increased interest rates

• decreased job opportunities

• decreased government regulation

• increased educational opportunities

Select the four factors of production.

• Capital

• Labor

• Land

• Entrepreneurs

• Global

Technology and transportation are considered what type of resources?

• Capital

• Industrial

• Cultural

• Movement

The workers in a factory are considered what type of resource?

• Natural

• Human

• Capital

• Entrepreneurship

A bulldozer is an example of what type of resource?

• Capital

• Entrepreneurship

• Natural

• Human

Trees are an example of what type of resource?

• Capital

• Natural

• Human

• Entrepreneurship

When an automobile manufacturer builds 200,000 units of its top selling model, the company is responding mainly to which question?

• Where to produce?

• How to produce?

• What to produce?

• When to produce?

Which example best identifies someone acting as an entrepreneur?

• Miguel gives money to a charity.

• Arin works as a clerk at the city hall.

• Jared buys groceries to feed his family.

• Felice hires people to work in her factory.

What term is best described as a method for distributing scarce resources?

• Specialization

• Marginal Analysis

• Allocation

• Pricing