Economics Final Exam 2017

Scarcity is a problem because of the tension between limited resources and unlimited

• choice
• goods
• needs
• wants

The term for the value of the next best alternative in an economic decision is

• cost-benefit analysis
• free lunch
• opportunity cost
• trade off

An outward shift in a production possibilities curve could be caused by

• fewer resources available
• more resources available
• underutilization
• efficiency

People are most likely to agree on economic goals and roles in a 

• command economy
• market economy
• planned economy
• traditional economy

In Marx's view, the factory owner's profit depends upon

• an efficient approach to the use of natural resources
• the degree of competition from other producers
• a favorable political climate
• the use of human labor as a commodity

North Korea's economic problems stem mainly from

• prolonged drought
• misguided central planning
• out of date farming methods
• unrestricted free markets

Private property rights are important in a market economy because 

• are vital to any sale or exchange
• determine price levels
• encourage people to be generous
• let the government know whom to tax

The United States has

• laissez faire capitalism
• laissez faire socialism
• a modified command economy
• a modified capitalist economy

Customers of the factor markets are

• businesses
• households
• individuals
• workers

Of the following nations, the country with a mixed economy that leans most toward socialism is

• France
• Namibia
• Sweden
• the United States