Economics Exam Prep

1. 1What are the four factors of Production?

   1. AIndustrial, Resources, Capitalism, Private Property
   2. BCapitalism, Entrepreneurship, Services, Land
   3. CCapital, Labor, Land, Entrepreneurship
2. 2 Economics: the study of how individuals and societies make choices about ways to use scarce resources to fulfill their wants.

   1. ATrue
   2. BFalse
3. 3Scarcity: When people want tangible items that they don't have

   1. ATrue
   2. BFalse
4. 4Opportunity Cost: Value of the next best alternative given up for the alternative that was chosen.

   1. ATrue
   2. BFalse
5. 5Entrepreneurship: Ability of risk-taking individuals to develop new products and start new businesses in order to make profits

   1. ATrue
   2. BFalse
6. 6Needs: Wanting something you don't have

   1. ATrue
   2. BFalse
7. 7Wants: When people want a tangible item they do not have. Ex. New Car, Tablet, Huge Flat Screen Tv, etc.

   1. ATrue
   2. BFalse
8. 8Services: Actions that can satisfy people's wants or needs

   1. ATrue
   2. BFalse
9. 9Capitalism: Where individuals are able to do what they want

   1. ATrue
   2. BFalse
10. 10Market: Freely chosen activity between buyers and sellers of goods and services

    1. ATrue
    2. BFalse

11. 11Private Property: Whatever is owned by individuals rather than by government

    1. ATrue
    2. BFalse
12. 12What is Adam Smith's 'Invisible Hand Theory'?

    1. AEveryone has an invisible hand on their shoulder
    2. BIndividuals work for their own self interest
    3. CPeople have the right to freedom of religion
13. 13What are the three types of Economic Systems?

    1. ACapital, Democracy, Communism
    2. BMoney, Education, Farming
    3. CTraditional, Command, Market
14. 14Warranty: An ad that attracts people to purchase the item

    1. ATrue
    2. BFalse
15. 15What is the difference between Discretionary and Disposable Income?

    1. ADiscretionary: Money left after necessities have been bought
       Disposable: Money remaining to spend or save after taxes have been paid
    2. BDiscretionary: Money left after taxes
       Disposable: Money left after necessities
    3. CDiscretionary: Left over money in your wallet
       Disposable: Left over money in your bank

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Quiz on Economics Exam Prep, created by Hailey Williams on 10/01/2016.

Author

Hailey Williams

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