PBMF Semester Exam Review 2024

Front

Economics is the study of how individuals and societies use limited resources to satisfy unlimited wants. True or False?

Back

True

Front

Scarcity means there is an unlimited amount of resources to meet human wants.

Back

False

Front

Opportunity cost is the next best alternative that is forgone when a decision is made.

Back

True

Front

The law of demand states that as the price of a good decreases, the quantity demanded increases.

Back

True

Front

The law of supply states that as the price of a good decreases, the quantity supplied increases.

Back

False

Front

A market economy is one in which supply and demand determine prices and quantities produced.

Back

True

Front

A command economy relies on government authorities to make all the decisions regarding production and distribution.

Back

True

Front

A mixed economy includes elements of both market and command economies.

Back

True

Front

Gross Domestic Product (GDP) measures the total value of all goods and services produced in a country.

Back

True

Front

Inflation refers to the general increase in prices and the fall in the purchasing value of money.

Back

True