Economics Final Exam - The Thunderdome

The Factors of production include which of the following?

• goods, services, products, and capital

• land, labor, capital, entrepreneurialism

• land, goods, capital, and products

• labor, products, utility, and capital

ln a capitalist system, most property is

• owned by the government

• owned by corporations

• private property

• owned by banks

The value of the next best alternative that has to be given up for the action that is chosen is the

• factor of production

• trade-off

• opportunity cost

• product

What goods and services should be produced, how they should be produced, and who should share in what is produced are three basic questions addressed by

• market economies

• command economies

• mixed economies

• all economies

All the combinations of goods and services that can be produced in a given time with a fixed amount of resources are called

• costs of production

• factors of production

• opportunity costs

• production possibilities

A laissez-faire economic system is one in which

• government controls the factors of production

• individuals and the government make economic decisions

• government interference in the economy is minimal

• government purchases goods and services from consumers

A person who buys a stock for $20 and sells it for $30 has earned $10 in

• capital gains

• profit

• taxes

• reward

Federal agencies actually decrease competition in an industry by

• allowing foreign companies to compete in the United States

• using antitrust legislation against monopolies

• using antitrust legislation against monopolies

• over regulating

GDP adjusted for price changes

• Real GDP

• Nominal GDP

• Inflation

• Deflation

The ability of an individual or group to carry out a particular economic activity more efficiently than another individual or group is called

• Absolute advantage

• Comparative advantage

• Real advantage

• Nominal advantage