1. As a factor of production, how is a capital created?
   

ABy adding land to entrepeneurship

BBy adding human labor to land

CBy removing land from services

DBy using labor to create services

1. If consumers start to believe they need a product, what is likely to happen?
   

Athe demand becomes less elastic

Bthe demand becomes more elastic

Cthe supply decreases

Dthe price decreases

1. Which of the follwoing commodities is a good?
   

Aa swimming lesson

Ba desk

Chouse cleaning

Ddog walking

1. If your company uses a nonprice competition strategy, what should you focus on?
   

Alowering prices

Bdifferentiation

Ccreating direct competitors

Dthe public sector.

1. A market economy is regulated by the interactions betweeen which two things?
   

AGood and services

Bproducers and consumers

Cproduct-based and service-based businesses

Dpublic and private sectors.

1. If the demand for a product decreases, what is likely to happen?
   

Athe supply is likely to increase

Bthe demand is likely to be inelastic

Cthe price is likely to increase

Dthe price is likely to decrease

1. A producer is someone who ______
   

Amakes a commodity available for sale or exchange

Bbuys or trades in order to recieve a commodity

Cis in the market for a commodity

Drecieves a commodity from a business

1. Which of the following is an indirect competitor for a company that makes chocolate chip cookies?
   

Aanother company that makes chocolate chip cookies

Ba company that makes potato chips

Ca company that makes baking pans

Da company that makes brownies

1. What is likely to happen if the price of a product goes up?
   

Athe supply is likely to increase

Bthe supply is likely to decrease

Cthe demand is likely to cause scarcity

Dthe demand is likely to increase

1. what does scarity force people to do?
   

Aproduce commodities

Bmake choices

Cconsume products

Dincrease inflation

1. which f the following is a sign of a strong economy?
   

Aan increase in GDP

Ba shrinking economy

Can increase in unemployment

Da decrease in spending power

1. in capitalism, what does competition do for consumers?
   

Ait limits the number of choices consumers have

Bit prevents consumers from being entrepreneurs

Cit lets consumers create monopolies

Dit keeps prices fair for consumers

1. what is an increase in competition likely to do to the demand?
   

Aincrease the demand

Bdecrease the demand

Cmake the demand less elastic

Dmake the demand more elastic

1. If a planned economy, prices of commodities are controlled by ____
   

Asupply and demand

Bproducers and consumers

Cthe government

Dprivate enterprises