Economics Final Review

Front

Which item is not one of the four pillars of the Free Market system? Prices, Private Property, Voluntary Exchange, Competition

Back

Prices

Answer explanation

Prices is not one of the four pillars of the Free Market system. The pillars are Private Property, Voluntary Exchange, and Competition.

Front

What are the three primary factors of production?

Back

land, labor, capital

Answer explanation

The three primary factors of production are land, labor, and capital, making the correct answer choice land, labor, capital.

Front

Advantages: can be efficient, equal, security
Disadvantages: can be inefficient, innovation ignored, no freedom
What type of economy is being described?

Back

Command economy

Answer explanation

The correct choice is Command economy because it aligns with the advantages and disadvantages mentioned in the question.

Front

If you decide to stay up late with friends instead of going to sleep, sleeping is your what?

Back

Opportunity Cost

Answer explanation

If you decide to stay up late with friends instead of going to sleep, sleeping is your Opportunity Cost.

Front

If you decide to stay up late with friends instead of going to sleep, you will be tired but you won't miss out on the excitement. Being rested but seeing everything represents what?

Back

Tradeoffs

Answer explanation

Choosing to stay up late with friends instead of going to sleep involves a tradeoff between being tired and not missing out on the excitement.

Front

Demand is both...

Back

willingness and ability

Answer explanation

Demand is both willingness and ability, as it involves the desire to purchase a product or service (willingness) and the financial capacity to do so (ability).

Front

Price goes down, ...

Back

supply goes down

Answer explanation

When the price goes down, the supply goes down as producers may find it less profitable to produce the good at a lower price.

Front

Price goes up, ...

Back

supply goes up

Answer explanation

When the price goes up, the supply goes up as well. This is because producers are incentivized to supply more of the product at a higher price.

Front

As incomes rise, ...

Back

demand goes up

Answer explanation

As incomes rise, demand goes up because consumers have more purchasing power to buy goods and services.

Front

As populations decrease, ...

Back

demand goes down

Answer explanation

As populations decrease, demand goes down because there are fewer people needing goods or services.