Economics - 2019 Spring Semester Final Exam

Economics is the study of…

• money and the stock market

• the factors that influence income, wealth, and well-being

• supply and demand

• the United States' economy

Economic decisions are generally based upon what process?

• Business Cycle Analysis

• Needs and Wants Analysis

• Cost/Benefit Analysis

• Alternative Analysis

In the "PACED Decision-Making Process", you evaluate alternatives based upon what?

• Money available

• Peer pressure

• Criteria identified

• Needs and wants

In a market economy, what is the MAJOR motivator for corporations?

• Shareholder satisfaction

• Profit

• Growth of the company

• Increased market share

In what type of economy do government officials determine how to produce goods/services?

• Command

• Market

• Traditional

• Theocracy

In what type of economy do individuals and firms determine what will be produced?

• Command

• Market

• Traditional

• Dictatorship

An economic system answers three questions about goods and services.

Which of the following options is NOT one of these questions?

• What to produce

• Where to produce

• How to produce

• Who receives the products

What is the definition of opportunity cost?

• The next best alternative that you give up.

• The money you spend to buy something.

• The chance that you will lose your money.

• All of the choices you have made but didn't.

Macroeconomics is the study of…

• money and the stock market

• the factors that influence income, wealth, and well-being

• supply and demand

• the behavior and performance of an economy as a whole

What term describes the amount a government’s revenues exceed its expenditures in a particular year?

• Public debt

• Budget surplus

• Budget deficit

• National debt