Economics Terms Quiz Questions!

Explanation
Need refers to something that is essential for our survival. It is a basic requirement that we cannot live without.

Explanation
Entrepreneurs combine natural resources, labor, and capital to make a profit. They are individuals who take risks and start new businesses or ventures. They identify opportunities in the market, assemble the necessary resources, and manage the operations to generate profits. Entrepreneurs play a crucial role in the economy by creating jobs, driving innovation, and contributing to economic growth. They are distinct from owners, who may not actively participate in the management of the business, and middlemen, who primarily facilitate transactions between buyers and sellers. Factories, on the other hand, are physical locations where goods are produced, but they do not necessarily involve the combination of resources for profit-making.

Explanation
The correct answer is "In demand" because if a person is lost in the desert with no water, it means that they are in need of water. Therefore, water would be in demand for that person in order to survive.

Explanation
Uncle Tom is unemployed because he has lost his job and is currently looking for work. Being unemployed means that a person does not have a job or is without work.

Explanation
The correct answer is Tariff. A tariff is a tax imposed on goods imported from another country. In this case, the United States has decided to tax all goods from China in order to raise money. This tax is known as a tariff.

Explanation
Air is a basic need for survival as we need oxygen to breathe. Food is also essential for providing the necessary nutrients and energy for our bodies. Money, on the other hand, is not a basic need for survival but rather a means of acquiring goods and services. Shelter is important for protection and comfort, but it is not a fundamental requirement for survival. Therefore, the statement that Air, Food, Money, and Shelter are all needs for survival is false.

Explanation
The three factors of production needed to produce goods and services are natural resources, human resources (labor), and capital. Natural resources refer to the materials and substances found in nature that are used in production, such as land, water, and minerals. Human resources, or labor, refer to the physical and mental effort contributed by individuals to the production process. Capital refers to the financial resources and physical assets, such as machinery and equipment, used in production.

Explanation
Bartering refers to the practice of exchanging goods and services between people without the use of money. It is an ancient form of trade that predates the use of currency. In a barter system, individuals directly exchange goods and services with each other, based on their needs and wants. This system allows for the direct exchange of goods without the need for a medium of exchange like money.

Explanation
The given correct answer for this question is "Trade Deficit". This is because when a country imports more goods from another country than it exports, it creates a trade deficit. In this case, America owes China billions of dollars, indicating that it imports more goods from China than it exports, resulting in a trade deficit.

Explanation
The given statement is false because America signed the Declaration of Independence on July 4th, 1776, not July 10th.