Final EOC Review (Economics)

Opportunity cost is...

• The choice you made
• The value of your choice not made 
• The next unit, or increment, of an action
• The additional benefit received from the consumption of the next unit of a good or service.

The study of how society allocates scarce resources.

• Microeconomics
• Macroeconomics
• Scarcity
• Economics

Also called "factors of production," there are commonly grouped into the four categories: land, labor, physical capital, and entrepreneurial ability. 

• Product
• Resources
• Utility
• Marginal

The additional benefit received from the consumption of the next unit of a good or service.

• Marginal Benefit
• Marginal Cost
• Opportunity Cost
• Economics

The ability to produce a good at a lower opportunity cost than all other products. 

• Comparative Advantage
• Absolute Advantage
• Specialization 
• Opportunity cost

An economic system in which resources are allocated through the decisions of firms and consumers (Suppliers and Demanders)

• Market Economy (Capitalism)
• Command Economy
• Economy
• Traditional Economy

If the price of butter increases, then we would expect that the demand for margarine would fall.

• True
• False

Which of the following best describes the Law of Demand?

• As price goes down, demand goes down. (and vice versa).
• As price goes down, demand goes up (and vice versa).
• As demand goes down, supply goes up.
• As demand goes up, price becomes elastic.

A surplus happens when

• prices are too low relative to consumer demand.
• prices are too high relative to consumer demand.
• prices are too low relative to producer demand
• prices are too high relative to producer demand.

Which type of GDP is adjusted for inflation, so that it won't be affected by rising prices? 

• Real GDP
• Nominal GDP
• All of the above
• None of the above