What does an economy do?
Once you have watched the introductory economics video, try these questions to test you understanding.
Economics is often called the study of:
scarcity
money
production
countries
The resource ‘capital’ is:
an investment in a company
money invested in shares
a naturally occurring resource
something man made that is used to produce other goods and services
Each nation organises itself to solve basic economic problems through:
business
the economic system
government
the military
A factor which distinguishes a command or market economy is;
who owns the resources
the role of workers
the price of goods
the emphasis on consumer goods
The term ‘mixed economy’ means;
the economy has exports and imports
the economy has mixed employment
the government and private sector (business) participates in the economy
the economy produces mixed goods
Which of the following are resources used in the production process? Choose the most correct answer.
land
labour
capital
all of the above
The inputs into the production process of an economy are:
resources (land, labour and capital)
goods and services
The economy produces outputs which are:
resources
goods and services
The economy's resources are scarce because:
needs and wants are unlimited and resources are limited
needs and wants are limited and the resources are unlimited
The economic system decides the following:
what is produced in the economy
how the items are produced
who gets the produced items
all of the above
You got {number correct}/{number of questions} correct answers
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