Economics Final

Which one is a need? 

• Water
• Soda
• TV
• iPhone

A _______ is something that you desire to have because it adds happiness to your life.

• need
• want
• value
• wish

Which one of the following is considered an economic want?

• Food & Water
• Clothing
• Shelter
• Transportation

Which of the following best defines opportunity cost?

• It is the cost of producing those goods most desired by an economy
• It is the cost of the input mix that will lead to the greatest rate of growth for a company
• It is the amount of one product that must be given up in order to produce another
• It is the cost of labor used in the production process

The basic problem of all economies is essentially one of deciding how to make the best use of:

• unlimited resources to satisfy unlimited wants 
• unlimited resources to satisfy limited wants 
• limited resources to satisfy unlimited wants 
• limited resources to satisfy limited wants 

The thing that you give up (the next best alternative) when you make a decision is known as

• Opportunity Cost
• Scarcity
• Incentive
• Choice

A person that takes a risk by starting a new business.

• human capital
• capital goods
• entreprenuer
• tariff

When quantity demanded exceeds quantity supplied at a certain cost

• shortage
• fad
• search costs
• surplus

Supply would be defined as...

• The amount of product needed to start a business

• The amount of money made after selling a product

• The amount of a good or service that is sellers are willing and able to sell

• The amount of a good or service that buyers are willing to buy

Demand would be defined as...

• Consumer's need to have a good or service

• When a consumer really wants something

• Consumer’s desire and willingness to pay a certain price for a specific good or service

• Consumer's buying habits in a market economy