economics exam\n/50 date: ________ name: ________\n1. describe why land labor, capital and entrepreneurship…

economics exam\n/50 date: ________ name: ________\n1. describe why land labor, capital and entrepreneurship are important as the factors of production. give an example of each. (4)\n2. explain the difference between goods and services. give an example of each. (3)\n3. describe the difference between a corporation and a sole proprietorship. give an example of each. (3)\n4. match the type of market structure with each example. (3)\na. pure competition online auctioning\nb. monopoly water and sewer service\nc. oligopoly digital camera makers\n5. what is an entrepreneur? identify one american entrepreneur who has started a successful business and describe how they helped grow the economy. (2)\n6. joaldina has a business selling popcorn on the street corner. there is a steady demand for popcorn and people have come to depend on a quick fix on their drives home from work. she is currently selling popcorn for $1 a bag. she hears on the news that there has been a terrible tornado that destroyed most of the corn crops in the mid - west. what will this do to the supply of popcorn and what will happen to the price?(3)

economics exam\n/50 date: ________ name: ________\n1. describe why land labor, capital and entrepreneurship are important as the factors of production. give an example of each. (4)\n2. explain the difference between goods and services. give an example of each. (3)\n3. describe the difference between a corporation and a sole proprietorship. give an example of each. (3)\n4. match the type of market structure with each example. (3)\na. pure competition online auctioning\nb. monopoly water and sewer service\nc. oligopoly digital camera makers\n5. what is an entrepreneur? identify one american entrepreneur who has started a successful business and describe how they helped grow the economy. (2)\n6. joaldina has a business selling popcorn on the street corner. there is a steady demand for popcorn and people have come to depend on a quick fix on their drives home from work. she is currently selling popcorn for $1 a bag. she hears on the news that there has been a terrible tornado that destroyed most of the corn crops in the mid - west. what will this do to the supply of popcorn and what will happen to the price?(3)

Answer

Brief Explanations:

  1. Factors of production: Land provides natural resources like farmland for agriculture. Labor is human - effort, e.g., factory workers assembling products. Capital includes tools and machinery, such as a printing press for a publishing company. Entrepreneurship organizes the other factors, like Steve Jobs starting Apple and innovating products.
  2. Goods vs. services: Goods are tangible items, like a smartphone. Services are intangible, such as a haircut.
  3. Corporation vs. sole proprietorship: A corporation is a legal entity separate from its owners, e.g., Microsoft. A sole - proprietorship is owned by one person, like a local coffee shop owned by an individual.
  4. Market structures: Pure competition has many buyers and sellers with identical products, like online auctioning. A monopoly has a single seller, such as water and sewer service in a local area. An oligopoly has a few large sellers, like digital camera makers.
  5. Entrepreneur: An entrepreneur is a risk - taking individual who starts a business. Elon Musk, with Tesla, has advanced electric vehicle technology and created jobs, boosting the economy.
  6. Supply and price: The tornado will decrease the supply of popcorn as corn crops are destroyed. With steady demand, the price of popcorn will increase due to the law of supply and demand.

Answer:

  1. Land is important as it provides natural resources (e.g., farmland). Labor is human effort (e.g., factory workers). Capital is tools and machinery (e.g., printing press). Entrepreneurship organizes the others (e.g., Steve Jobs at Apple).
  2. Goods are tangible (e.g., smartphone), services are intangible (e.g., haircut).
  3. Corporation is a separate legal entity (e.g., Microsoft), sole - proprietorship is owned by one person (e.g., local coffee shop).
  4. A. Pure competition - Online auctioning; B. Monopoly - Water and sewer service; C. Oligopoly - Digital camera makers.
  5. An entrepreneur is a risk - taking business starter. Elon Musk with Tesla has created jobs and advanced technology, growing the economy.
  6. Supply of popcorn will decrease, price will increase.