Economics Final

What word describes the basic economic problem of unlimited wants wants verses limited resources?

• capital

• entrepreneur

• scarcity

• utility

What is the basic economic question?

• what, how, and for whom to produce

• what, when, and why to supply

• what, how, and why to purchase

• what, when, and for whom to tax

What is the cost of the next best alternative use of your time and money?

• fixed cost

• opportunity cost

• variable cost

• marginal cost

What are the four factors of production?

• labor, government, capital, entrepreneurship

• land, labor, capital, entrepreneurship

• language, land, capital, firms

• land, labor, capital, government

Which of the following is NOT an economic system?

• traditional

• command

• market

• commercial

In which economic system do government officials make the basic economic decisions?

• traditional

• command

• market

• capitalism

What kind of economic system is American capitalism?

• traditional

• command

• market

• communist

What philosophy says that the government should stay out of the economy as much as possible?

• mixed economy

• laissez-faire

• communism

• keynesian

Who is the father of capitalism?

• Adam Smith

• Karl Marx

• John Maynard Keynes

• David Ricardo

Which principle of American free enterprise indicates why individuals open businesses?

• profit motive

• voluntary exchange

• economic freedom

• open opportunity