Fundamentals Review

Which describes scarcity?

• unlimited wants but limited resources
• a method for determining equity
• a type of economic system
• a type of business organization

Mr. Chapelle owns a car wash and hires Ray and Charles who use the towels to wash the cars. In this scenario Mr. chappelle is

• land
• labor
• capital
• entrepreneurship

Which of the following is not one of the 3 basic economic questions

• What goods and services are produced?
• How should goods and services be produced?
• Who receives the goods and services?
• How do we share the resources?

The inuits live in Canada in harsh climates and they believe in herding only for subsistence and they strongly support their customs. In this scenario, which economic system is represented?

• market
• traditional
• command
• socialism

The US prides itself in freedom of choice and private ownership of property. The economic system in the US is a 

• traditional
• market
• mixed market
• command

Which broad social and economic goals does the market economy achieve best?

• economic freedom and economic efficiency
• Economic equity and economic freedom
• Economic equity and economic efficiency
• economic stability and economic freedom

Which broad social and economic goals does the command achieve best

• economic freedom and economic equity
• economic efficiency and economic stability
• economic equity and economic security
• Economic freedom and economi stability

Johnny goes to the mall with $50. He decides to buy shirt even though he wants some jeans. What is his opportunity cost?

• the new shirt 
• the hat
• nothing he got what he wanted
• the satisfaction of the new jeans

Which economic model is represented in  this graph

• PPF
• supply and demand
• circular flow
• none of the above

Johnny operates a bakery and uses his oven to bake breads, cookies and tarts. In this scenario, breads and cookies represent

• land
• labor
• capital
• goods