Economics Final Exam Review

What is true about scarcity? 

• Scarcity applies to natural resources.
• Scarcity applies to all resources in every society. 
• Scarcity applies to different resources in different societies. 
• Scarcity is due to the three basic economic questions. 

What factor of production is a teacher?

• Labor
• Land
• Capital
• Entrepreneurship

The use of COAL and OIL to power a business is an example of what factor of production?

• Labor
• Land
• Entrepreneurship
• Capital

If there are 12 cupcakes demanded and 5 cupcakes supplied, what is true? 

• The market is at equilibrium.
• There is a shortage of 7 cupcakes.
• There is a surplus of 7 cupcakes.
• It is impossible to tell; more information is needed.

Which of the following could be a substitute for a soft drink?

• Bread
• Water
• Shirt

 amount of product a consumer is willing and able to purchase at given prices 

• Supply
• Demand
• Elasticity
• Marginal Cost 

the point at which the supply curve intersects the demand curve and the two are equal 

• Equilibrium
• Substitutes
• Money Income 
• Real Income 

The study of economics helps people to 

• become better decision makers
• make wise choices for political candidates
• understand the free-enterprise system
• all of the above

What is the fundamental problem of every society?

• labor costs
• scarcity
• economic interdependence
• market fluctuation

How do you satisfy your unlimited wants in a world of limited resources?

• by making more money
• by making choices
• by stealing
• by setting a budget