Economics Practice Final

Front

All societies must answer these three questions: WHAT to produce, HOW to produce it, and FOR WHOM it is to be produced?

Back

WHAT to produce, HOW to produce it, and FOR WHOM it is to be produced?

Front

Economics is the study of: business, finance, international trade, choice

Back

choice

Front

Which of the following descriptions best explains the meaning of opportunity cost? Options: the initial cost of starting a new business, the cost of business failure, the cost of choosing one alternative over another, the risk associated with a new product failing

Back

the cost of choosing one alternative over another

Front

The four factors of production are: land, capital, labor, and resources; land, labor, entrepreneurs, and consumers; tools, machinery, factories, and costs; land, labor, capital, and, entrepreneurs

Back

land, labor, capital, and entrepreneurs

Front

A point inside the production possibilities curve represents -

Back

An inefficient use of resources.

Front

Which of the following would result in a change in the production possibilities curve in a mythical country Alpha? Options: an influx of immigrants from other countries, the discovery of an abundant natural resource, a long drought, all of the above

Back

all of the above

Front

In the product market of the circular flow model –

Back

consumers buy finished products from firms

Front

The crucial problem of economics is:

Back

allocating scarce resources to satisfy unlimited wants

Front

Which of these statements describes a disadvantage of a traditional economy? Everyone knows his or her role., New ways of doing things are encouraged., New ways of doing things are discouraged., Difficult economic decisions are made by the state.

Back

New ways of doing things are discouraged.

Front

In which of these systems is the government most likely to provide people with goods & services they could not otherwise afford?
Options: market economy, socialist economy, traditional economy, free enterprise economy

Back

socialist economy