Practice Test

Question 1

Which situation best reflects the concept of free enterprise?

Revolt · Accepted Answer

Consumers have a choice between two bakeries in a single city block.

Question 2

Which of the would be considered a nonrenewable resource?

Revolt · Accepted Answer

petroleum

Question 3

The government has the right to own all land, buildings, and factories in a

Revolt · Accepted Answer

command economy.

Question 4

In a command economy, a cotton farm floods after a heavy storm. The repair work most likely will be paid by

Revolt · Accepted Answer

the government group that runs the farm.

Question 5

What role do government agencies play in a mixed market economy?

Revolt · Accepted Answer

They regulate some aspects of production and distribution.

Question 6

The factors of production attempt to instill the idea that resources are

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scarce.

Question 7

Resources needed to provide goods or services are called

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factors of production.

Question 8

Opportunity cost means that something needs to be

Revolt · Accepted Answer

given up.

Practice Test Answers