Introduction to Economics Questions

1. ___ are physical objects someone produces while ___ are actions that a person performs.

• wants; goods
• goods; services
• services; needs
• needs; wants

8. Gold, iron, diamonds, and natural gas would all be included in:

• land
• labor
• capital
• all of the above

15. Which of the following is involved in economics?

• individuals
• businesses
• governments
• all of the above

12. Which of the following economic systems has the most government influence?

• traditional
• capitalism
• socialism
• communism

5. A limited amount of goods and services cannot meet our unlimited needs and wants. This is known as:

• deficit
• debt
• capital
• scarcity

6. Which of the following is NOT one of the factors of production?

• time
• capital
• land
• labor

13. Under capitalism, how is it determined who gets what is produced?

• customs
• competition
• cooperation
• commands

4. Which of the following is NOT a service?

• A car wash
• A surgical procedure
• A massage
• An automobile

2. ___ are essential for survival while ___ are extra things we desire.

• wants; goods
• goods; services
• services; needs
• needs; wants

3. Which of the following is NOT a good?

• a backpack
• a haircut
• a pair of shoes
• a couch