This document contains the answers to multiple short quizzes on economic concepts: The factors of production are land, labor, capital, and entrepreneurship. Scarcity is permanent while a shortage is temporary. The economic problem is that we have unlimited wants but limited resources to satisfy them. Incentives motivate action, and examples include love. The three questions every economy must ask are what, how, and for whom to produce.

1. August 13th, 2009 Quick Quiz What are the factors of production? Land, Labor, Capital, Entrepreneurship

2. August 13th, 2009 Quick Quiz What is the difference between scarcity & shortage? Scarcity is permanent and a shortage is temporary.

3. August 13th, 2009 Quick Quiz What is the economic problem? We have unlimited wants but limited resources.

4. August 13th, 2009 Quick Quiz What are incentives and give an example. One thing that motivates you to do something else. Love.

5. August 13th, 2009 Quick Quiz What are the three questions every economy must ask itself? What to produce, how to produce, and for whom to produce.

6. August 13th, 2009 Quick Quiz “Based on GDP, 51 of the 100 largest economies in the world are corporations.” Is this a normative statement or a positive statement? Why? Positive, it’s a fact.

7. August 13th, 2009 Quick Quiz In order for a resource to be scarce, it has to be and Limited and Desirable

8. August 13th, 2009 Quick Quiz Explain the difference between growth, development, and sustainability. Growth – increase in output (quantitative) Development – increase in standard of living (qualitative) Sustainability – balance between growth and preserving the environment

9. August 13th, 2009 Quick Quiz Explain the difference between these three economies: market, planned, traditional. Give examples of each. Market – privately owned companies (USA) Planned – publically owned companies (Cuba) Traditional– economies that have been passed down through traditional means (The jungles of Peru)