Economics Semester Final Review

Economics is the Study of how people make choices based on the concept of

• scarcity

• production possibilities

• financial planning

• microeconomics

Everything given up, or sacrificed when making a choice is called

• tradeoff

• opportunity cost

• scarcity

• a cost

A company is said to be operating at maximum efficiency if its operating

• Inside the PPC

• On the PPC

• Outside the PPC

• At a profit

A example of a capital resource would be

• a pilot at an airline

• a cash register at a super market

• the owner of a hardware store

• oil in an oil refinery

The three basic economic questions are

• what, why and for whom

• what, where, and why

• what, how and for whom

• why, who and where

The three basic economics questions are answered by who in a mixed economy?

• government

• individuals

• individuals with limited government

• traditions and customs

Adam Smith argued that in a market economy, rational self-interest was the motivating force. What did he say was the regulating force?

• low interest rates

• competition

• consumer demand

• profit motive

How do consumers benefit from business competition?

• They do not benefit

• Lower Taxes

• Lower Prices and more choice

• Higher profits

Which of the following is a public good?

• drive in movie theater

• catholic church

• humane society building

• city or county library

An example of income distribution in US is...

• social security

• charity

• tax refund

• a gift card