Economics Final Exam

Economics is the study of how society manages its ________ resources

• Scarce
• unlimited
• undervalued

The study of an individual firm and its production decisions would be an example of ________.

• macroeconomics
• microeconomics
• socialism

The study of the unemployment rate in the United States would be an example of ________.

• macroeconomics
• microeconomics
• limited government

What is the product market?

• It is the market in which households purchase the goods and services that firms produce.
• It is the market in which firms purchase the factors of production from households.
• It is the market in which income is received for supplying land, labor, or capital.

An example of a consumer buying a good would be ________.

• paying for a haircut
• buying a cheeseburger
• paying for a maid to clean your house

An example of an individual producing a service would be ________.

• a barber giving a haircut
• a baker making a pie
• a farmer growing wheat

Entrepreneurship is the practice of ________.

• always making a profit
• developing new products to be sold in the market
• making money in a capitalistic economy

Due to the scarcity problem, all societies must answer which of the following questions?

• What goods and services will be produced?
• How will the goods and services be produced?
• Both of these questions

Which point represent an efficient use of society’s resources?

• Point D
• Point B
• Point C

Which point represents the situation in which the economy is producing its maximum possible quantity of tubas?

• Point E
• Point A
• Point D