#1
Which of the following is a characteristic of a traditional economic system?
Private ownership of resources
Centralized planning by the government
Emphasis on cultural and religious values
Market-driven allocation of resources
#2
Which factor of production includes the efforts of individuals involved in the production process?
Land
Labor
Capital
Entrepreneurship
#3
Which of the following is an example of a renewable natural resource?
Coal
Petroleum
Sunlight
Natural gas
#4
Which factor of production includes the physical space upon which production occurs?
Labor
Capital
Land
Entrepreneurship
#5
What is the primary focus of a traditional economic system?
Maximizing profit
Individual freedom
Following established customs and traditions
Achieving economic equality
#6
Which factor of production includes the tools, equipment, and machinery used in production?
Labor
Capital
Land
Entrepreneurship
#7
In a command economy, what determines the production and distribution of goods and services?
Supply and demand
Consumer preferences
Government directives
Individual choices
#8
What is the primary function of capital in the production process?
To generate profit for the business owner
To represent money invested in a business
To facilitate the exchange of goods and services
To enhance the productivity of labor
#9
What is a key feature of a mixed economic system?
Government control over all economic activities
Absence of private property rights
Combination of market forces and government intervention
Complete autonomy of individual producers
#10
What is the role of entrepreneurship in the economy?
To consume goods and services
To represent physical assets
To take risks and innovate
To provide financial capital
#11
In a market economy, what primarily determines the allocation of resources?
Government regulations
Consumer preferences and demand
Centralized planning
Labor unions
#12
Which of the following is an example of human capital?
Factory machinery
Educational qualifications
Fertile land
Raw materials
#13
Which economic system is characterized by private ownership of resources and decentralized decision-making?
Socialism
Capitalism
Communism
Feudalism
#14
Which economic system advocates for the collective ownership of resources and the absence of social classes?
Socialism
Capitalism
Communism
Mercantilism