Economics Final Review

What are the four main factors of production?

• Land, labor, capital, and entrepreneurship

• Land, labor, management, and work

• Education, capital, labor, and fun

• Entrepreneurship, labor, money, and capital

What concept represents unlimited wants and limited resources and is the basis of Economics?

• Equity

• Management

• Free Market

• Scarcity

A free market structure is often based around which of the following concepts?

• Private property and slavery

• Equal taxation for all

• Private property and voluntary exchange

• Voluntary exchange and open elections

Which type of economic structure provides some government intervention but also allows for some individual freedom?

• Free Market

• Mixed

• Command

• Traditional

What is the main incentive for those entering into a free market structure?

• Scarcity

• Creation

• Equity

• Profit

Which economic philosopher was the first to advocate for a purely free market system?

• Karl Marx

• Adam Smith

• Karl Rove

• Milton Friedman

In which direction does a supply curve generally go?

• Sideways

• Up

• Down

• Around

In which direction does a demand curve generally go?

• Sideways

• Up

• Down

• Around

Which of the choices below describes equilibrium?

• The intersection of demand and supply

• The creation of surplus

• Any point under the line of efficiency

• The intersection of a shortage and voter freedom

If good X and good Y are complements, what could be a consequence for good Y if there is a price increase on good X?

• Demand would increase

• Demand would decrease

• Supply would fall

• GDP would rise