Economics Semester Review

A car is an example of

• durable good

• nondurable good

• capital good

• service

Opportunity cost refers to

• the dollar amount attached to a good or service

• the value of the next best alternative

• the cost of not expanding production

• the cost of labor when production is expanded or changed

Economics is best defined as the study of how societies deal with

• the factors of production

• the problem of scarcity

• the paradox of wealth

• the division of labor

The economic system of the United States is considered a

• free market capitalist economy

• command economy

• socialist economy

• traditional economy

Which is a good synonym for the work barter in the term barter economy

• trade

• fiat

• specie

• monetary

Consumers in a free enterprise economy ultimately determine _____ to produce.

• when

• how

• what

• where

Consumers are powerful because

• they have more rights than corporations

• thye help decide a business's opportunity costs

• they drive decisions about what to produce

• their interests force producers to behave ethically

What gives people and businesses the opportunity to make their own decisions

• profit motive

• economic freedom

• command economy

• free enterprise

In what kind of economy does the government own all of the factors of production?

• communist

• market

• socialist

• traditional

Which of the following is a basic characteristic of money?

• portability

• durability

• divisibility

• all of these