The Three Questions of Economics Answers

1

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Which of the following best illustrates the importance of addressing the three questions of economics?

A

People’s desires and needs are always changing.

B

Businesses need to use limited resources wisely.

C

Traditional methods of production are outdated.

D

Businesses need to limit production.

2

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Which of the following is an example of a labor resource?

A

money available to be invested in a company

B

water held in a reservoir

C

a city’s population

D

electricity produced by a nearby power plant

3

Which of the following best illustrates deciding how to produce a specific product?

A

Should we produce jeans with expensive machinery or less expensive labor?

B

Can we market our jeans to teenagers or focus on people in their twenties?

C

Do we have enough customer support to charge more for our jeans?

D

Are jeans still "in," or should we develop a line of skirts instead?

4

Which factors are considered when deciding how to make goods and services? Choose three answers.

A

determining who has the greatest need

B

finances of prospective buyers

C

methods traditionally used to make goods

D

ways to produce items at a lower cost or higher quality

E

ways to make the biggest profit

5

If a specific economy has extra capital resources available, it will

A

be able to produce top-quality goods and services.

B

continually look to expand and invest.

C

be able to produce more goods and services needed and wanted by society.

D

have additional labor available to focus on production.

6

A society decides that it needs to produce more corn to feed the growing population. What must it do before it begins the production process?

A

analyze existing resources, such as water availability

B

determine how people will receive the surplus crops

C

study the profitability of increasing corn production

D

understand who is in a position of authority to produce more

7

Resources needed to provide goods or services are called

A

factors of production.

B

facets of production.

C

functions of production.

D

facts of production.

8

Which consideration must a society address when deciding for whom to produce a potentially scarce or limited resource?

A

Who can be most creative with the product?

B

Who has the largest resource pool?

C

Who has the greatest need?

D

Who can bring in the greatest profit?

9

Which of the following is an example of a land resource?

A

cow

B

machinery

C

employee

D

tractor

10

Which of the following will be accomplished by efficient allocations of the factors of production?

A

guaranteeing economic success

B

understanding whether a product will fail

C

fulfilling many needs and wants of society

D

replenishment of limited resources

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Use the drop-down menus to complete each sentence.

Answers:

Suarez Farms and Super-Phonic Systems had some difficult decisions about what to make, who to make it for, and how to make it. Each business first had to think about the kind ofor service it wanted to:product

Suarez Farms and Super-Phonic Systems had some difficult decisions about what to make, who to make it for, and how to make it. Each business first had to think about the kind ofor service it wanted to:the market

Suarez Farms and Super-Phonic Systems had some difficult decisions about what to make, who to make it for, and how to make it. Each business first had to think about the kind ofor service it wanted to:customers'

In making their decisions, both companies had to remember the factors of production: land or natural resources,, and capital.:labor

34631

the countrytheir workers✔ the market

A

the country

B

their workers

C

✔ the market

34632

country's✔ customers'workers'

A

country's

B

✔ customers'

C

workers'

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profit✔ laborregulations

A

profit

B

✔ labor

C

regulations

The Three Questions of Economics Answers

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