Economics

Which of the following is physical capital?

• a college degree

• a factory building

• learning to sew

• playing the violin

Which group lists the key principles of the free enterprise system?

• profit motive, legal equality, consumer

  protection, public interest

• profit motive, legal equality, private

  property, voluntary exchange

• private property, taxation, public

  interest, patriotism

A free market system has fewer _____ than a mixed economy does.

• product markets

• business regulations

• factor markets

• voluntary exchanges

If you choose between two summer jobs, what is the one you do not choose called?

• trade-off

• opportunity cost

• decision at the margin

• opportunity at the margin

Why does every decision involve trade-offs?

• Incomes are not equal.

• Resources are limited.

• Decisions are all different.

Which of these economic goals is concerned with using resources wisely and reducing waste?

• economic security

• economic equity

• economic freedom

• economic efficiency

SELECT ALL THAT APPLY: Which one of these is an example of a scarce resource?

• Time

• Money

• Food

• Oil

Which of the following is considered a factor of production in economics?

• A) Money

• B) Labor

• C) Technology

• D) Government

What is the primary purpose of a market economy?

• A) To distribute wealth equally

• B) To allow government control

• C) To allocate resources efficiently

• D) To eliminate competition

In economics, what does GDP stand for?

• A) Gross Domestic Product

• B) General Domestic Policy

• C) Global Development Plan

• D) Gross Development Program