10 Questions
What is the primary focus of the study of economics?
The production of goods and services
Which of the following is NOT a factor of production?
Market demand
What is the role of entrepreneurship in the production of goods and services?
To provide the skill, drive, and creativity needed to bring resources together
What is the relationship between resources and outputs in the context of economics?
Resources are the inputs used to produce outputs
What is the term used to describe the inputs used to produce goods and services?
Factors of production
What is the primary function of entrepreneurship skills in the production of a shirt?
To coordinate the other resources to make the shirts and distribute them to the marketplace
In the context of the circular flow of inputs and outputs, what do households provide to businesses?
Labor, land, and capital
What is the main objective of economists when studying the interactions between households and businesses?
To answer questions about what goods and services to produce, how to produce them, and who should receive them
What is the key characteristic of planned economic systems?
The government exerts control over the allocation and distribution of goods and services
What is the primary purpose of the circular flow of inputs and outputs?
To show the interactions between households and businesses in the production and distribution of goods and services
Get started with understanding the basics of economics by learning about the resources used to produce goods and services. Discover the definition of economics and how it relates to the production, distribution, and consumption of goods and services. Test your knowledge of inputs and outputs!
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