Economics Block Final Exam

Economics is about making choices.

• True

• False

Consumers in command economies have an unlimited amount of all goods available to them.

• True

• False

Labor is a type of human resource.

• True

• False

You should ignore sunk costs in making economic choices.

• True

• False

Without scarcity, there would be no need for prices and no economic problem.

• True

• False

An economic system is the set of mechanisms and institutions that resolves the what, how, and for whom questions that all economies must answer.

• True

• False

A command economy is shaped largely by custom or religion.

• True

• False

The number of workers in the agricultural industry in the United States has steadily increased since the Industrial Revolution.

• True

• False

Money is the most accepted system of exchange throughout the world.

• True

• False

A jacket bought at a second-hand store is a normal good.

• True

• False