Econ Final Exam

Identify the potential factor of production shown in this photo.

• physical capital
• land
• labor
• risk-taking entrepreneur

Which of the following is true about scarcity?

• Scarcity affects all societies.
• Scarcity exists only in poor countries.
• Scarce goods lead to lower prices.
• Scarcity of resources can be eliminated using sound economic policies.

What trade-off would a person make by choosing the stairs instead of the up escalator?

• giving up speed in favor of ease
• giving up ease in favor of speed
• giving up exercise in favor of ease
• giving up ease in favor of exercise

A person is considered an entrepreneur because she

• has earned millions of dollars.
• has many employees who work for her.
• combined resources to create new products.
• was a woman who succeeded in a male-dominated industry.

Identify the physical capital in this photo.

• the house
• the crops
• the farmer
• the tractor

What is Bob's opportunity cost if he decides to go out to eat with friends?

• the money spent on the dinner
• the money saved by not going out
• getting exercise
• having fun with friends

A point to the left of the frontier on the graph above would indicate

• overutilization of the economy.
• underutilization of the economy.
• decreased watermelon production.
• decreased shoe production.

Which of the following is a function of households in the market economy?

• provide firms with the factors of production.
• provide firms with goods and services.
• send land, labor, and capital to firms through the product market
• send money to firms through the factor market.

Consider the diagram. Which of the following is MOST LIKELY depicted in the top half of this diagram?

• traditional economy
• free market economy
• centrally planned economy
• mixed economy

Which of the following is an economic goal of the US?

• create government economic policies.
• enact government spending proposals.
• economic freedom.
• financial security.