Fundamentals Exam - Make-up/Retake

Only a few resources exist.

Unlimited wants exceed limited resources.

There is not enough demand to use all the available products.

For a short period of time, there are not enough goods to meet the demand.

Land is not scarce because it is a natural resource that can be recreated.

Entrepreneurship is not scarce because it is not limited, anyone can be an entrepreneur.

Each of the factors of production is scarce to some degree causing companies to make choices.

Labor is the only truly scarce resource because there are a limited number of desirable employees for any job.

Land

Labor

Capital

Entrepreneurship

the physical and mental talents of workers

the ability of a person to work more efficiently than another person

a person willing to take a financial risk by combining resources to produce a good or service

a person who uses land, labor, and capital in their job

pay sales taxes to make a purchase.

replace land and labor with capital resources.

consider the environmental impact of purchases.

make decisions that require them to give up the next best alternative.

autonomous work groups

team decision making

quality circles

division of labor

Traditional

Market

Command

Coach Searcy’s Dictatorship

Market

Command

Traditional

Socialism

government makes all decisions

the same products get made year after year

retirees could get left behind if they have not planned for their own future

everyone makes the same amount of money regardless of how hard they work.

Casinos are a public good

A positive externality would be entrepreneurs making money off of hotels

A negative externality could be the possible destruction of the beach’s ecosystem that existed prior to the construction

This is an example of the government controlling the means of production