1. The study of how firms, nations, andindividuals best allocate their limitedresources is called what?
A. Circular Economic ActivityB. EconomicsC. Factoring ProductionD. Supply and Demand Analysis
2. Computers, trucks, hammers, and otherman-made materials would be with factor ofproduction?
A. CapitalB. EntrepreneurshipC. LaborD. Land
3. Logan starts a restaurant using his ownmoney to purchase a building and cooking supplies such as ovens and grills. This is anexample of which of the following economicterms?
A. EntrepreneurshipB. ProductivityC. SpecializationD. Investment
4. What term do we use to describe items thatare necessary for our survival?
A. ScarcityB. ShortageC. NeedD. Want
5. Which of the following best describesfactors of production?
A. The resources necessary to producegoods and servicesB. The number of steps it takes to make aproductC. The mathematical equations thatdetermine GDPD. The goods and services that a countryproduces
6. What is entrepreneurship in a capitalisteconomy?
A. Maximizing manpower needed toproduce goods and servicesB. Using all the goods and services inproductionC. Minimizing the social and economic riskin governmentD. Making a profit by taking a risk tosatisfy a perceived market need