Fundamentals of Economics

_______ includes the tools, equipment and factories used in production.

• labor

• entrepreneurship

• capital

• goods

_________ is when a company or individual decides to focus their labor on a specific type of production.

• specialization

• scarcity

• sustainability

• investments

_______ are required to produce goods and services.

• alternatives

• investments

• resources

• incentives

A _______ _______ is an economic system where customs and traditions are the elements that determine the way trade and commerce are performed.

• market economy

• mixed economy

• traditional economy

To divide resources is to ________.

• sustain

• economic growth

• allocate

• capital

Why is scarcity a basic economic problem?

• resources are limited

• governments limit production

• opportunity costs limit production

• people have trouble making choices

Which is not one of the four basic economic questions by Adam Smith

• What to produce

• For whom to produce

• How to produce

• How much to produce

• When to produce

how is the economic question, how much to produce answered?

• Census data

• Profit projections

• Consumer demand

• Government quotas

Which factor of production would be considered land

• Coal

• Factory

• Money

• Tractor

True or False- Paying rent instead of purchasing tickets to a concert is an example of Opportunity Cost

• True

• False